Gujarat's Green AI Data Centre Policy (2026–29)

Gujarat's Green AI Data Centre Policy (2026–29)
Why in News?
The Gujarat Government has launched the Viksit Gujarat Data Center Policy (2026–29), targeting ₹6 lakh crore in investments and 7.5 GW of data centre capacity, making it one of India's most ambitious policies for AI-ready, green data centres.
What is a Data Centre?
A data centre is a specialised facility that houses computer servers, networking equipment and storage systems used to process, store and manage digital data for cloud computing, artificial intelligence (AI), internet services and digital applications.
Key Features of the Gujarat Data Center Policy (2026–29)
•    Targets ₹6 lakh crore in investments and 7.5 GW of data centre capacity.
•    Seeks to establish hyperscale, AI-ready data centres powered by clean energy.
•    Mandates that at least 51% of electricity used for core operations must come from green and renewable sources.
•    It also offers extensive incentives including:
o    100% exemption from stamp duty and registration fees on land transactions.
o    Reimbursement of electricity duty for 20 years.
o    Power subsidy of ₹1 per unit for 20 years.
o    Relaxations in Floor Space Index (FSI), parking and building norms.
o    Financial support for desalination plants to meet high water requirements.
Focus on Dholera
The policy gives special emphasis to Dholera Special Investment Region (SIR), envisioned as a major digital and semiconductor manufacturing hub.
Special incentives include:
•    2.5% capital subsidy on eligible fixed capital investment.
•    Interest subsidy of up to 4% for 10 years.
•    Additional incentives for establishing large-scale data centre infrastructure.
Dholera is also home to the Tata Electronics semiconductor fabrication plant, whose foundation was laid in 2024 and commercial production is expected to begin in 2028.
Industry Developments
•    Reliance Industries and Meta have partnered to establish India's first AI-enabled data centre at Jamnagar, Gujarat.
•    The facility will have an initial capacity of 168 MW, powered by renewable energy and cooled using desalinated water.
•    Google has announced plans for a 100% clean-energy-powered AI data centre campus in Andhra Pradesh.
•    AdaniConneX plans to build a 5 GW nationwide data centre platform powered by renewable energy from Khavda, Gujarat.