The government of Gujarat has launched the ‘Viksit Gujarat Data Centre Policy 2026-29’, signalling a major push towards positioning the state as a hub for data infrastructure. The move comes as the state aims to attract investments exceeding Rs 6 lakh crore in its first phase, with proposals already in from 14 companies. This policy is significant as it makes Gujarat the first Indian state to introduce a dedicated framework for the establishment of data centres, a step that could accelerate the digital transformation of its economy.
### Gujarat’s Vision for Data Centres
The launch event, held at the Mahatma Mandir Convention Centre, was marked by Chief Minister Bhupendra Patel’s declaration of Gujarat’s ambitions to become the nation’s preferred destination for data centres. The policy aims to attract large-scale investments to develop data centre capabilities, particularly in Dholera, which is expected to host a cluster with a capacity of 7 to 8 GW. Science and Technology Minister Arjun Modhwadia highlighted that a one-gigawatt data centre requires investments ranging from Rs 70,000 crore to Rs 1 lakh crore, underscoring the scale of Gujarat’s commitment.
The policy focuses on creating a comprehensive AI ecosystem that includes cloud computing and quantum computing, beyond just data storage facilities. The government’s strategy is to leverage the rapid advancements in AI and cloud computing to meet the increasing demand for digital infrastructure, which they view as a pillar of economic growth.
### Context and Competition
Globally, India has been lagging behind in terms of data centre capacity, with only around 200 centres compared to thousands in the United States and Europe. By launching this policy, Gujarat is setting itself apart from other Indian states, potentially drawing in both domestic and international investors looking for robust digital infrastructure.
While other states like Maharashtra and Karnataka have been popular for tech investments, Gujarat’s strategic location and policy incentives could make it an attractive alternative. The development of Dholera as a “data centre city” could also spur further economic activities, including the establishment of Global Capability Centres (GCCs) and improved connectivity through new transportation infrastructures like a semi-high-speed rail link to Ahmedabad.
### Implications for India’s Startup Ecosystem
The establishment of a robust data centre infrastructure in Gujarat could have far-reaching implications for India’s startup ecosystem. Startups, particularly those in sectors like fintech, SaaS, and digital services, stand to benefit from increased data availability and reduced latency. The policy’s emphasis on sustainability, requiring that at least 51% of electricity for data centres be sourced from renewable energy, aligns with the broader global push towards green tech solutions.
The data centre policy could also stimulate job creation in tech and engineering fields, offering new opportunities for professionals in these sectors. Moreover, as Gujarat attracts more tech investments, it could bolster the state’s innovation ecosystem, potentially leading to the emergence of new tech hubs outside the traditional centres of Bengaluru and Hyderabad.
As Gujarat embarks on this ambitious journey, key stakeholders, including founders, engineers, and investors, should closely monitor the policy’s implementation and the subsequent development of infrastructure. The success of this initiative could set a precedent for other states, influencing national policies on digital infrastructure and investment. The next step involves stakeholder consultations and the appointment of nodal officers to facilitate investment processes, which will be crucial in maintaining the momentum and achieving the policy’s ambitious targets.
