Why is Gujarat betting ₹6 lakh crore on data centres? | Explained
The Gujarat government has launched a new data centre policy aiming to attract ₹6 lakh crore in investments to build 7.5 GW of capacity. This initiative positions the state as a major hub for digital infrastructure to support AI, cloud computing, and e-commerce.
Why it matters
It signals a shift in state-level economic competition in India, moving from traditional manufacturing to hosting the physical infrastructure required for the global digital economy.
The story so far: When the Gujarat Government unveiled its first-ever Data Centre Policy (2026-2029), it did more than announce a new industrial policy but signalled its ambition to enter one of the fastest-growing segments of the global digital economy by becoming the first State in India to bring a policy.
The State hopes to attract investments worth ₹6 lakh crore and build 7.5 GW of data centre capacity over the next few years, positioning itself alongside established hubs such as Maharashtra, Tamil Nadu and Telangana. It also shows a larger trend unfolding across the country: that States are no longer competing only for factories, IT companies, ports or automobile plants. They are now competing to host the digital infrastructure that powers everything from artificial intelligence (AI) to online banking.
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