Green energy push 7.5 gw capacity target

The Gujarat government has announced the Gujarat Data Centre Policy, 2026–29. The policy targets nearly ₹6 lakh crore in investment and 7.5 GW of data-centre capacity, stated to be the highest target in India.

Key Objectives

• Develop Gujarat as a major destination for hyperscale and AI-ready data centres.
• Create infrastructure capable of supporting up to 7.5 GW of data-centre capacity.
• Attract domestic and international investors through regulatory and financial support.

Focus on Green Energy

• Data centres must source at least 51% of their electricity requirement from green and renewable energy.
• The policy aims to promote AI-ready data centres with a strong emphasis on environmentally sustainable operations.
• Gujarat is stated to be the first State to introduce a dedicated policy specifically designed for green AI data centres.

Dholera as a Data Centre Hub

• The government plans to attract data centres to the Dholera region, located around 100 km southwest of Ahmedabad.
• Eligible projects will receive a capital subsidy of 2.5% of fixed capital investment.
• The subsidy covers core technical and infrastructure expenditure but excludes land, land development and semiconductor chips.

Financial Incentives

• Exemption from stamp duty and registration charges on the purchase or lease of land.
• 100% reimbursement of electricity duty for 20 years.
•  Power subsidy of ₹1 per unit for 20 years from the commencement of commercial operations.
•  Reimbursement of eligible expenditure on plant, machinery, buildings, infrastructure and services for up to 20 years.
•  Financial assistance for setting up desalination plants to meet the sector’s high water requirements.

Wider Industry Context

• Google has announced plans for a 1-GW AI data-centre campus in Andhra Pradesh powered entirely by clean energy.
• The Adani Group has announced a 5-GW data-centre platform across India.
• Adani’s first 1-GW facility is expected to be powered by the Khavda renewable energy project in Kutch.
• Telangana was the first State to announce a data-centre policy in 2016, followed by Tamil Nadu, Uttar Pradesh, West Bengal, Odisha, Maharashtra, Haryana and Andhra Pradesh.