Deputy Chief Minister Harsh Sanghavi highlighted Gujarat’s new ‘Viksit Gujarat – Data Centre Policy 2026-29,’ drawing parallels to India’s historical semiconductor industry struggles. Despite past failures, Sanghavi expressed optimism about Gujarat’s data center ecosystem development. He emphasized the state’s commitment to learning from past mistakes.
Sanghavi noted India’s previous unsuccessful semiconductor initiatives, dating back to 1976, and a failed attempt in Hyderabad between 2006 and 2009. In contrast, he praised Gujarat’s recent success in attracting semiconductor investments and becoming a key player in the industry. Sanghavi credited the state’s efficient implementation capabilities for this progress.
Gujarat stands out as the first Indian state to officially introduce a dedicated Data Centre Policy. Sanghavi revealed that the policy, with an initial capacity of 7.5 GW, has already garnered significant investor interest, surpassing the planned capacity. Leading companies have expressed eagerness to establish data centers in Gujarat, showcasing the state’s appeal for such investments.
The Viksit Gujarat Data Centre Policy 2026-29 offers various incentives to promote hyperscale data centers and AI infrastructure. These incentives include capital subsidies, power tariff support, tax reimbursements, and provisions for renewable energy and sustainable water usage. The policy aims to boost investment in digital infrastructure to meet the rising demand for AI computing and cloud services.
