The Government of Gujarat has launched a comprehensive data centre policy designed to position the state as a destination for hyperscale and colocation data centres with a focus on artificial intelligence workloads and high?performance computing. The policy sets a target to attract Rs six trillion (Rs 6 tn) of investment and to enable seven point five GW of data?centre capacity while promoting a scalable, secure and sustainable digital?infrastructure ecosystem. The scheme intends to leverage abundant renewable power and growing international connectivity to draw global cloud providers and hyperscalers.

The fiscal package includes a two point five per cent capital subsidy on eligible fixed capital investment in the Dholera region claimable within 10 years, and an interest subsidy of up to four per cent on term loans for 10 years capped at Rs 250 million (Rs 250 mn) annually. Operational relief measures comprise a power tariff subsidy of Rs one per unit for 20 years and one hundred per cent reimbursement of electricity duty for the same period. Tax incentives include SGST reimbursements on plant and machinery, building infrastructure and eligible services for up to 20 years together with exemptions on stamp duty and registration fees.

Non?fiscal facilitations are intended to speed approvals and reduce project friction through a single?window clearance mechanism, relaxations in building norms for floor space and parking, provision for dual power feeders and open access permissions, and facilitation for distribution licences. Sustainability conditions require projects availing incentives to source at least 51 per cent of their electricity from renewable sources and provide capital assistance for captive desalination plants to address long?term water requirements.

The state plans to strengthen international connectivity with two operational cable landing stations and expects further announcements to bolster network resilience and lower latency for global operators. The policy promotes collaboration among industry, academia and startups to stimulate innovation, create high?value jobs and develop clear skill pathways in cloud engineering, cybersecurity and emerging technologies. Achieving the seven point five GW objective would make the state a major pillar in India’s national data?centre growth and an enabler for local AI deployment and cloud?native industries.