Data Centre Policy of Gujarat (2026-29)
The Gujarat government's new policy aims to stimulate significant growth in data center investments and capabilities, positioning itself as a leader in the sector within India.
Key Objectives
- Investment Target: Rs 6 lakh crore.
- Capacity Goal: Creation of 7.5 gigawatts (GW) of data centre capacity.
- The policy's ambition is to set up the highest data centre capacity in the country.
Incentives for Investors
- Exemptions on duty and taxes.
- Relaxation of Floor Space Index (FSI) regulations.
- Commitment to uninterrupted water and power supply.
- Building norms relaxations to support infrastructure development.
Green Energy Emphasis
The policy underscores the use of renewable energy sources:
- Electricity Usage: At least 51% must be sourced from green and renewable energies.
- Supports a broader industry shift toward eco-friendly energy solutions.
- Example: Google's AI data centre in Andhra Pradesh will be completely powered by clean energy.
Financial Incentives
- Total exemption of stamp duty and registration fees for land leasing or purchasing.
- 100% reimbursement of electricity duty for 20 years.
- Subsidy of Re 1 per unit of power consumed for 20 years from the start of operations.
- Full reimbursement for eligible expenses on infrastructure and services for up to 20 years.
Focus on Dholera Region
- Targeted development of a smart industrial city 100 km from Ahmedabad.
- Capital subsidy of 2.5% on Eligible Fixed Capital Investment (EFCI), claimable within 10 years.
- Interest subsidy of up to 4% for 10 years, capped at Rs 25 crore annually.
In March 2024, the foundation of a Rs 91,000-crore Tata Electronics semiconductor fabrication plant was laid in Dholera SIR, marking significant future developments in the region.
