Gujarat Notifies 'Viksit Gujarat – Data Centre Policy 2026-29', Names Dholera SIR as Its Principal Data-Centre Hub

What was decided

The Gujarat government launched the 'Viksit Gujarat – Data Centre Policy 2026-29' on July 9, 2026. The Gujarat government on Thursday launched the 'Viksit Gujarat Data Centre Policy 2026-29', and announced that it has already received proposals from 14 companies to set up data centres and expects investments of more than ₹6 lakh crore in the first phase, with Chief Minister Bhupendra Patel launching the policy at the Mahatma Mandir Convention Centre. Deputy Chief Minister Harsh Sanghavi said Gujarat plans to develop Dholera into the world's largest data centre city as the state launched the policy, outlining a strategy centred on large-scale digital infrastructure, renewable energy and investor facilitation. Sanghavi said Dholera has already been prepared with the infrastructure required for hyperscale data centre projects.

Operative targets and Dholera's specific role

The newly launched policy has an initial capacity of 7.5 GW, while demand from investors has already reached nearly twice that level, with companies from India and overseas submitting requests to establish data centres across Gujarat. Science and Technology Minister Arjun Modhwadia said Dholera alone is expected to house a data centre cluster with a capacity of 7 to 8 GW. Modhwadia added that a one-GW data centre requires an investment of ₹70,000 crore to ₹1 lakh crore, so Dholera's cluster could attract investments of about ₹6-7 lakh crore, with the first phase alone expected to exceed ₹6 lakh crore.

Statewide, Gujarat has already received proposals for nearly 10 GW of data centre capacity and aims to develop up to 8 GW under the new policy.

Fiscal incentives and eligibility thresholds

• A 2.5% capital subsidy for eligible projects in the Dholera region, up to a 4% interest subsidy for 10 years and a ₹1-per-unit power tariff subsidy for 20 years.
• 100% exemption from stamp duty and registration fees, reimbursement of electricity duty for 20 years and reimbursement of eligible SGST on investments and operations.
• Additional Floor Space Index (FSI), relaxed building norms, rooftop utility permissions, dual power supply, open access for electricity procurement, 24x7 water supply, single-window clearances and sub-leasing of land without additional charges in the first instance.
• Only projects with a minimum approved IT load of 150 MW will be eligible for incentives.

Under the policy, Gujarat has recognised data centres as strategic infrastructure and will provide a range of fiscal incentives, including capital and interest subsidies, power tariff support, SGST reimbursement, electricity duty reimbursement, assistance for desalination plants and stamp duty exemptions.

Sustainability mandates

Sanghavi said sustainability had been built into the policy, making it mandatory for data centres to source 51 per cent of their electricity from green energy while encouraging desalination to reduce pressure on freshwater resources. He was explicit that this would not come at the cost of existing users: "We will not simply provide water by diverting water meant for other industries or for farmers. We have specifically emphasised desalination and maximising the use of seawater by converting it into freshwater."

Approvals process and land access

The Deputy Chief Minister also announced measures intended to simplify investment approvals: a stakeholder consultation meeting will be convened where investors will be shown the available land parcels, and every company that wishes to invest in Dholera will be assigned a senior officer as a nodal officer so that investors do not have to run from one government department to another. Sanghavi also tied this to a broader ambition: "As Dholera advances towards becoming the world's leading destination for data centres, the government is also working to ensure that Dholera becomes the headquarters for GCCs in the future."

Supporting infrastructure cited by the state

Sanghavi added that supporting infrastructure was progressing alongside industrial development, including the upcoming operationalisation of Dholera Airport and a planned semi-high-speed rail connection from Ahmedabad. He also linked the region's readiness to power and water assurances: he said Gujarat had emerged as a preferred destination because of its policy stability, uninterrupted power supply and long-term planning for water availability. Statewide, the policy document highlights Gujarat's existing infrastructure strengths, including 69 gigawatts of installed power capacity, of which 47 gigawatts comes from renewable energy sources, along with industrial hubs such as Dholera and GIFT City.

Who administers Dholera SIR

Dholera SIR itself is administered separately from the new data-centre policy's incentive machinery. The Government of Gujarat created a legislative framework for the Special Investment Region under the SIR Act 2009, with the Dholera Special Investment Region Development Authority (DSIRDA) responsible for planning, development, and administering government land, while a Special Purpose Vehicle — Dholera Industrial City Development Limited (DICDL) — was formed between the Central Government (NICDC Trust) and DSIRDA to implement the project. Any investor land allotment inside the SIR for data centre projects will run through this DICDL/DSIRDA structure rather than through the state's Science & Technology Department alone.

Practical effect

For investors, the policy converts Dholera from a general industrial/manufacturing land bank into a formally incentivised data-centre and AI-infrastructure destination, with fiscal support conditional on a 150 MW minimum IT load and a 51% green-power commitment. A stakeholder consultation meeting to show investors available Dholera land parcels was described by Sanghavi as imminent — "In the coming days, we will convene a stakeholder consultation meeting where investors will be shown the available land parcels." For the region generally, the policy formalises a shift already flagged by officials: Gujarat has already received proposals for nearly 10 GW of data centre capacity and aims to develop up to 8 GW under the new policy. Locals and existing landholders in Dholera SIR should note that land allotment for these projects continues to run through DICDL/DSIRDA's existing Town Planning Scheme framework, not through a separate data-centre land authority.