Ahmedabad: Data centres have become one of the fastest-growing segments of the global digital economy, and Gujarat wants a bigger share of that investment. The state govt on Thursday unveiled the Viksit Gujarat Data Centre Policy 2026-29 offering financial incentives, infrastructure support, and regulatory relaxations for large projects. It has fixed a target of 7.5GW capacity and over Rs 6 lakh crore in investments. Officials said interest is already building, with 14 proposals received so far.The policy focuses on large-scale facilities by restricting incentives to projects with a minimum approved IT load of 150MW. Officials said the emphasis is on attracting global hyperscalers, cloud service providers, and co-location operators, with Dholera expected to emerge as the state’s biggest data centre hub.To make Gujarat more competitive, the policy offers a wide range of financial incentives. Eligible projects will receive a power tariff subsidy of Re 1 per unit for 20 years from the date commercial operations begin, along with 100% reimbursement of electricity duty during the same period. Investors will also get complete exemption from stamp duty and registration charges on land purchase or lease.The govt has proposed reimbursement of 100% SGST paid on eligible plant and machinery, buildings, and allied infrastructure for eight years from the date of in-principle approval, subject to permanent reversal of input tax credit. It will also reimburse 100% net SGST paid on eligible operational services consumed within Gujarat for 20 years after commercial operations begin.Projects financed through bank term loans will qualify for an interest subsidy of up to 4% for 10 years, subject to a ceiling of Rs 25 crore a year.Dholera has been given additional incentives under the policy. Projects coming up there will receive a capital subsidy of 2.5% of eligible fixed capital investment, making it the only location in Gujarat eligible for this benefit. Officials said Dholera alone is expected to develop data centre capacity of 7GW to 8GW, almost matching the state’s overall target under the new policy.To support large-scale facilities, the policy also provides several planning and infrastructure relaxations. These include additional FSI, higher permissible ground coverage of up to 70%, relaxed parking norms, multi-level stacking of DG sets and transformers, relaxed floor-height norms, rooftop chillers, higher boundary walls, and underground fire-water tanks.Recognising the heavy water requirements of data centres, the govt has proposed financial support for captive desalination plants. Eligible projects will receive assistance of up to 20% of eligible capital expenditure or Rs 2 crore per MLD, whichever is lower.The policy also promises dual power supply, open-access power procurement, 24×7 water supply, faster statutory clearances, and support for obtaining distribution licences.As part of its sustainability push, Gujarat has made renewable energy mandatory for data centre operations. At least 51% of electricity consumed for core operations must come from renewable sources.Overall financial incentives under the policy will be capped at 75% of eligible fixed capital investment. The benefits will be disbursed over 20 years, with annual payouts capped at 5% of the total eligible incentive amount.The govt said Gujarat’s 69GW installed power capacity, strong renewable energy base, open-access electricity framework and dual power supply give it a competitive advantage in attracting large-scale data centre investments. It has also classified data centre operations as an essential service under the Gujarat Essential Services Maintenance Act, 1972. A high-powered committee and a state-level empowered committee will monitor implementation of the policy.
