Gujarat Targets 7.5 GW Data Centre Capacity With New Policy to Boost Digital Infrastructure

India’s digital infrastructure ambitions received a significant push as Gujarat unveiled a new data centre policy aimed at attracting hyperscale operators and large technology investments. The state government has set an ambitious target of creating 7.5 gigawatts of data centre capacity, positioning Gujarat as one of India’s leading destinations for digital infrastructure development.

The policy introduces several incentives designed to encourage domestic and international investors. These include subsidised land, power-related benefits and a single window clearance system to speed up approvals for new projects. The government believes these measures will help reduce project timelines while making Gujarat more competitive against established data centre markets such as Maharashtra and Tamil Nadu.

Demand for data centres has grown rapidly over the past few years as businesses continue shifting towards cloud computing, artificial intelligence, digital payments and online services. The expansion of Global Capability Centres, streaming platforms, fintech companies and e-commerce businesses has also increased the need for reliable digital infrastructure across the country.

Unlike conventional commercial buildings, data centres require substantial investments in land, power supply, cooling systems, fibre connectivity and security infrastructure. As a result, every new facility generates demand across multiple infrastructure sectors, including construction, electrical engineering, renewable energy, logistics and telecommunications.

Officials have identified the Dholera Special Investment Region as a major growth location for future data centre investments. The planned city already offers large land parcels, modern infrastructure and strong connectivity, making it suitable for large scale digital campuses. The state government has indicated that Dholera could eventually emerge as one of the world’s largest data centre hubs as investment activity gathers pace.

Industry experts note that India’s digital economy is expanding at an unprecedented rate. Rising internet usage, widespread smartphone adoption and increasing enterprise cloud migration are creating sustained demand for high capacity data storage and processing facilities. This has encouraged several global technology companies and infrastructure investors to expand their presence across India.

The new policy also complements Gujarat’s broader industrial development strategy, which includes manufacturing, renewable energy, ports and logistics infrastructure. By combining these strengths with digital infrastructure, the state aims to create an integrated ecosystem capable of supporting future technology driven industries.

The announcement comes at a time when several Indian states are competing to attract data centre investments through policy support and infrastructure upgrades. Uttar Pradesh recently introduced a new data centre policy, while other states are strengthening their digital infrastructure ecosystems to attract global investors.

According to industry estimates, India’s data centre sector is expected to witness strong growth over the coming years, driven by artificial intelligence applications, enterprise digitisation and increasing demand for cloud services. This expansion is expected to generate fresh opportunities for developers, contractors, engineering firms and infrastructure service providers involved in building next generation digital assets.

With policy support, improving infrastructure and growing investor interest, Gujarat is seeking to establish itself as a key destination for digital infrastructure investment. If successful, the initiative could strengthen India’s position as a global data centre market while supporting employment, economic growth and long term infrastructure development.