Gujarat Unveils 'Viksit Gujarat – Data Centre Policy 2026-29' to Boost Digital Infrastructure

Beyond mere infrastructure, the policy aligns with the broader national vision of 'Viksit Bharat', emphasizing the role of states in building the foundational layers of the digital revolution. Data centers are the backbone of modern governance, e-commerce, and emerging technologies like AI and IoT. By incentivizing these facilities, Gujarat is positioning itself to host the massive data traffic generated by India’s growing digital population. Furthermore, the policy includes provisions for sustainable practices, encouraging the use of renewable energy to power these energy-intensive facilities, which is crucial for meeting India's climate commitments. For policymakers and industry observers, this move highlights the competitive nature of federalism in India, where states are increasingly vying to attract high-value investments through specialized sectoral policies. The success of this initiative will depend on the effective implementation of these incentives and the state's ability to provide reliable, high-quality power and connectivity to the prospective data centers. UPSC Relevance: This development is highly relevant for GS Paper III under the themes of industrial policy and infrastructure development. Aspirants can cite this as a case study of 'Competitive Federalism' and state-level interventions to promote the digital economy, which is essential for answering questions on India's transition to a knowledge-based economy and the role of infrastructure in industrial growth.