Gandhinagar, Sep 11 (IANS) Gujarat has set a target of developing 7.5 GW of data-centre capacity under its new data-centre policy, a five-fold increase over India’s current 1.5 GW capacity, Science and Technology Minister Arjun Modhwadia told the state Assembly on Friday.
Replying to a question on the incentives and benefits under the ‘Viksit Gujarat-Data Centre Policy 2026-2029’, Modhwadia said the state is positioning itself to play a leading role in the emerging Artificial Intelligence (AI) ecosystem by expanding data storage and computing infrastructure.
“Data centres are the oil wells of today’s era, and Gujarat is moving ahead in this direction,” he said.
Modhwadia said 122 GW of data-centre capacity is currently operational worldwide. The United States has 4,423 data centres with a combined capacity of 53 GW, accounting for 44 per cent of global capacity.
The United Kingdom has 555 data centres with 2.5 GW capacity, while China has 369 data centres with 31 GW, accounting for 26 per cent of global capacity. Europe has 11.9 GW, while Japan and South Korea together have 6.6 GW.
Germany has 523 data centres. “India generates around 20 per cent of the world’s data but currently stores only 2 to 2.5 per cent of it. India accounts for around 2 per cent of global data-centre capacity, with 1.5 GW compared with 53 GW in the US,” he said.
He said Gujarat’s new policy sought to bridge this gap by encouraging large-scale investments. The state has already received expressions of interest (EOIs) for around 17 GW from 17 parties involving 19 projects.
“We have set a target of achieving 7.5 GW capacity. India’s current capacity is 1.5 GW, whereas Gujarat alone has set a target of 7.5 GW,” Modhwadia said.
He said the government planned to provide proactive incentives under the policy and initially intended to approve 7.5 GW of projects in a single phase, with subsequent decisions to be taken according to requirements and available capacity.
“The proposed investments could exceed Rs 17 lakh crore if all the applications materialised, with both national and international companies among the applicants,” he said.
He noted that the government had begun work on expanding the ecosystem in GIFT City and that, around six months ago, plans were made under Chief Minister Bhupendra Patel to establish a data centre in collaboration with Yotta Technology and the Sharjah government.
The minister also linked the development of data centres with Dholera, which he said was being developed over an area of around 900 square kilometres as a major high-tech industrial hub. “Our Dholera is going to become not only Gujarat’s but the country’s big smart city,” he said.
Modhwadia said Dholera would be larger than several high-tech cities in China and Taiwan and three times the size of Delhi. He also recalled that land in the area had been priced at around Rs 1,500 per acre in 2000.
He said the project had received support from local residents and leaders, who had recognised its future potential and cooperated with land acquisition and development.
According to the minister, data-centre investors setting up projects in Dholera would also be eligible for an additional 2.5 per cent capital subsidy.
Modhwadia said the state’s power availability and renewable-energy potential were important advantages for the data-centre sector, which requires substantial electricity.
“Gujarat and Rajasthan are leading states in green-energy generation, while Gujarat is currently number one in the country in green-energy production. Under the new policy, data centres would have access to 51 per cent green-energy power,” he said.
Desalination plants would be established to meet water requirements, while incentives would be provided for the use of desalinated water. He added that newer technologies would allow the water to be recycled, reducing pressure on water resources.
“This is the only such policy in India which is friendly to users, friendly to producers and also friendly to the environment,” he said.
The minister said data centres generally ranged from 50-100 MW to 2 GW in capacity, particularly for international companies, while Gujarat had fixed a minimum capacity requirement of 150 MW.
He said submarine cable connectivity would be crucial to the development of the ecosystem because most global communications traffic is carried through undersea cables.
“Cable landing stations would, therefore, be developed along with a separate policy for the infrastructure,” he added.
“Diu or Chorwad could have cable landing stations to support data centres in GIFT City, while other locations such as Porbandar, Surat and Dholera were also being considered,” he said.
Modhwadia said the emerging sector could create direct and indirect high-tech employment and contribute to reverse migration by attracting Indian professionals working abroad.
He cited the three semiconductor plants recently inaugurated by Prime Minister Narendra Modi, saying that many CEOs and senior executives involved in those projects had returned to India from abroad.
“This will lead to reverse migration and this revolution will create new opportunities for the new generation,” he said.
Modhwadia said the state’s efforts were aimed at ensuring Gujarat played a leading role as India entered the AI era.
“Earlier, when the computer revolution and IT revolution took place, India had the opportunity to lead those eras. Our youth seized that opportunity and today they are at the forefront on the global stage. But unfortunately, the leadership that should have been taken by the state governments and the Central government at that time was not taken,” he said.
–IANS
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