CM Bhupendra Patel 5 Years: Gujarat Set to Become a Leading Data Centre Hub
CM Bhupendra Patel 5 years: Gujarat has completed five years of governance under the leadership of Chief Minister Bhupendra Patel, marking a period of significant progress across the state’s economic, industrial and technology sectors. During these five years, Gujarat has continued to focus on strengthening its infrastructure while preparing the state for emerging technologies and future industries.
As part of this forward-looking approach, the Gujarat government has recently introduced the Viksit Gujarat Data Centre Policy 2026-29. The new policy is aimed at positioning Gujarat as a strong global destination for technology and digital infrastructure and helping the state emerge as one of the country’s leading data centre hubs.
Focus on Digital Growth Along With Green Energy
Chief Minister Bhupendra Patel said the state government has consistently focused on technologies that will play an important role in the future. The new data centre policy is also intended to support Prime Minister Narendra Modi’s vision of making India a global hub for digital and cloud infrastructure.
At the same time, the policy places considerable emphasis on environmental protection. To ensure that the expansion of digital infrastructure does not come at the cost of sustainability, data centres covered under the policy will be required to use 51 per cent green energy.
The government has also outlined a water-supply approach aimed at avoiding pressure on farmers and other industries. Instead of diverting water resources used by agriculture or existing industries, the policy places emphasis on supplying water through desalination plants, which convert seawater into freshwater.
Major Incentives for Data Centre Projects
The Viksit Gujarat Data Centre Policy 2026-29 includes several incentives intended to attract major investments in the sector.
For data centre projects established in Dholera, an additional 2.5 per cent capital assistance will be provided. The policy also provides for complete exemption from stamp duty, reducing the initial financial burden on companies setting up large-scale facilities.
Data centre projects will also be eligible for 4 per cent interest assistance for 10 years. In addition, electricity cost support of Rs 1 per unit will be available for the following 20 years, providing long-term operational support to eligible projects.
The Gujarat government has classified data centres as essential services. A streamlined approval mechanism has also been introduced to make the process of establishing such projects faster and easier. The policy targets the development of data centres with a combined capacity of 7.5 GW. According to the state government, companies have already submitted proposals representing around 10 GW of capacity, indicating strong interest from the industry.
Sanand and Dholera Could Lead Gujarat’s Data Centre Revolution
The growing importance of data centres has become particularly clear in the age of Artificial Intelligence (AI) and Machine Learning (ML). These technologies require reliable, high-capacity digital infrastructure, making data centres an increasingly important part of the modern technology ecosystem.
With the introduction of the new policy, Sanand and Dholera are expected to gain further importance as potential high-tech data centre destinations. These locations have already attracted attention because of Gujarat’s growing semiconductor ecosystem, and the government now aims to build on that foundation through large-scale digital infrastructure development.
The government is also working to develop Dholera as a potential headquarters location for Global Capability Centres (GCCs) in the coming years. The move is expected to strengthen the region’s position as a destination for technology-driven businesses and global companies.
Gujarat Strengthens Position as Investment Destination
The five-year governance period under CM Bhupendra Patel has placed continued emphasis on good governance, industrial development and infrastructure-led growth. The latest data centre policy reflects the state’s broader effort to prepare Gujarat for industries that are expected to drive the next phase of economic development.
With strong infrastructure, a growing technology ecosystem, green-energy requirements and a range of financial incentives, Gujarat is seeking to attract more global investors to the data centre sector.
The combination of semiconductor development in areas such as Sanand and Dholera, along with the push for large-scale data centre infrastructure, could further strengthen Gujarat’s position in India’s technology landscape. The state government believes these initiatives will help Gujarat emerge as a preferred destination for companies looking to establish data centres and build long-term digital infrastructure in India.
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