Gujarat Pushes Forward with Ambitious Data Centre Policy for AI Infrastructure

The Government of Gujarat has recently launched its ambitious Viksit Gujarat-Data Centre Policy 2026-2029, with a targeted development of 7.5 gigawatts (GW) of data centre capacity. This plan aims to position Gujarat as a leading hub for artificial intelligence (AI) computing infrastructure in India. The initiative reflects a substantial investment potential amounting to over Rs 17 lakh crore ($25 billion), which has wide-ranging implications for procurement professionals and technology vendors seeking opportunities in this emerging market.

Gujarat's data centre policy seeks to bridge the existing gap in India's data storage capabilities, as currently, the country generates approximately 20% of the world’s data but only manages to store 2-2.5% of it. While the nation boasts a data centre capacity of 1.5 GW, this pales in comparison to the 53 GW capacity found in the United States alone. Recognizing the need to boost its domestic storage infrastructure, Gujarat's proactive approach sets a bold target to increase its capacity five-fold, transforming the state's role in the global data landscape.

According to Science and Technology Minister Arjun Modhwadia, this policy is framed to attract significant investments while fostering high-tech job creation across key strategic locations such as Gandhinagar, Dholera, GIFT City, and Diu. Modhwadia referred to data centres as the "oil wells of today’s era," highlighting the critical nature of data centre operations in modern economies. He indicated that the global data centre market is growing rapidly; presently, there are 122 GW of operational data-centre capacity worldwide.

The policy not only prioritizes data capacity enhancement but also seeks to incentivize green energy adoption and the installation of cutting-edge infrastructure. Specific initiatives include the development of submarine cable landing stations and desalination plants, which are essential for ensuring the sustainability of newly established data centres. This strategic focus on technology and environmental responsibility presents lucrative opportunities for vendors in sustainable energy solutions, water processing technologies, and advanced computing systems.

As part of this initiative, the government has received expressions of interest (EOIs) for approximately 17 GW from various participants that involve 19 projects. The proactive stance of conceding approval for 7.5 GW of projects in a single phase illustrates the government's commitment to rapid execution. Additionally, partnerships with private firms, such as Yotta Technology, exemplify collaborative models that may enhance the development process further.

Procurement professionals should take note of the substantial contracting opportunities embedded in this multi-year policy. As the state gears up for this investment drive, organizations with expertise in AI infrastructure, data centre operations, and related services must analyze this policy for strategic market entry and investment planning.

In summary, the Viksit Gujarat-Data Centre Policy signals a significant shift in the Indian digital landscape and presents remarkable potential for procurement and contracting opportunities in the years to come.