Gujarat Unveils Green AI Data Centre Policy

Gujarat Unveils Green AI Data Centre Policy

Why in the News ?

The Gujarat Government has launched the Viksit Gujarat Data Centre Policy (2026–29), aiming to attract ₹6 lakh crore in investments and create 7.5 GW of data centre capacity, with a strong emphasis on green energy-powered AI infrastructure.

Gujarat Unveils Green AI Data Centre Policy

Gujarat’s Vision for Green AI Data Centres

  • Gujarat has announced the Viksit Gujarat Data Centre Policy (2026–29) to position itself as India’s leading hub for AI-ready hyperscale data centres.
  • The policy aims to attract ₹6 lakh crore in investments and establish 7.5 GW of data centre capacity—the highest target announced by any Indian state.
  • It follows Reliance Industries’ partnership with Meta to develop India’s first AI-enabled data centre at Jamnagar.
  • The policy seeks to create world-class digital infrastructure while supporting India’s growing demand for Artificial Intelligence (AI), cloud computing, and digital services.
  • Gujarat has become one of the few states to adopt a dedicated policy specifically focused on green AI data centres.

Incentives and Green Energy Focus

  • Data centre developers will receive multiple incentives, including:

○   100% exemption on stamp duty and registration fees for land transactions.

○   100% reimbursement of electricity duty for 20 years.

○   Power subsidy of ₹1 per unit for 20 years from the commencement of commercial operations.

○   Relaxations in Floor Space Index (FSI), uninterrupted water and electricity supply, and flexibility in building norms.

  • Eligible projects can receive a 2.5% capital subsidy on fixed capital investment, excluding land costs.
  • The policy mandates that at least 51% of electricity consumed for core operations must come from renewable and green energy sources.
  • Financial assistance is also available for desalination plants to address the high water requirements of data centres.
  • The government aims to promote the Dholera Special Investment Region (SIR) as a major destination for green data centre investments.

About Data Centres and Green Computing :

●  A Data Centre is a specialized facility that houses servers, storage systems, networking equipment, and computing infrastructure for processing and storing digital information.

●  Hyperscale Data Centres are very large facilities designed to support cloud computing, AI, and big data applications at massive scale.

●  Green Data Centres minimize environmental impact by using renewable energy, energy-efficient cooling systems, and sustainable infrastructure.

●  India’s rapid digital transformation, AI adoption, 5G rollout, and cloud services are significantly increasing demand for high-capacity data centres.

●  Promoting green data centres supports India’s commitments under the Paris Agreement, improves energy efficiency, and advances sustainable digital infrastructure.