Gujarat is preparing to introduce its first dedicated data centre policy as the state seeks to strengthen its position in India's rapidly growing artificial intelligence and cloud infrastructure ecosystem. The proposed policy is expected to provide a structured framework to attract large scale investments in hyperscale data centres, cloud infrastructure and AI-driven digital services while supporting the state's broader digital economy ambitions.
According to officials familiar with the development, the policy is likely to be unveiled shortly and will focus on creating an enabling environment for companies investing in next generation digital infrastructure. Gujarat aims to develop over 2 gigawatts of data centre capacity under the policy, placing it among India's emerging destinations for AI-ready infrastructure. The initiative is expected to offer incentives related to power, water, land and supporting infrastructure while encouraging sustainable development practices.
One of the key features under consideration is a requirement that at least 51 per cent of the electricity consumed by data centres should come from renewable energy sources. The move aligns with the state's efforts to balance the growing energy requirements of AI and cloud computing with sustainability goals, as data centres continue to become increasingly power intensive due to expanding AI workloads.
The policy comes at a time when states across India are competing to attract investments from hyperscale cloud providers, enterprise technology companies and AI infrastructure developers. Demand for data centres has risen sharply as businesses expand their use of generative AI, machine learning, cloud computing and high performance computing applications. These workloads require advanced facilities capable of supporting high density computing environments with reliable power, cooling and connectivity.
Gujarat has already taken several steps to position itself as an AI infrastructure hub. Earlier this year, the state signed a memorandum of understanding with L&T Vyoma to establish a 250 MW green AI-ready hyperscale data centre campus at Dholera Special Investment Region with a proposed investment of ₹25,000 crore. The project is expected to support cloud computing, AI model training and advanced analytics while creating employment during construction and long term operations.
The proposed data centre policy is expected to complement the state's existing IT and IT-enabled Services Policy while creating a dedicated framework for digital infrastructure investments. Industry observers believe specialised policies can help provide regulatory clarity, streamline approvals and improve access to utilities, all of which are critical factors for companies evaluating large data centre investments.
The timing of the policy also reflects India's growing focus on building domestic AI infrastructure. As enterprises increasingly deploy AI applications across sectors including financial services, manufacturing, healthcare and retail, demand for local computing capacity is expected to rise. Global cloud providers and technology companies have also continued expanding their presence in India, increasing the need for additional data centre capacity.
Gujarat's latest initiative mirrors a broader trend among Indian states to develop policies specifically designed for digital infrastructure. Recent government initiatives across the country have highlighted the strategic importance of AI-ready data centres in supporting innovation, digital services and economic growth.
If implemented as planned, Gujarat's first dedicated data centre policy could further strengthen the state's appeal for AI, cloud and digital infrastructure investments while supporting India's expanding technology ecosystem and growing demand for high performance computing infrastructure.