Gujarat has approved a Data Centre Policy, 2024-29 that aims to attract about Rs 6,000 crore in investment and build a 7.5-gigawatt data centre ecosystem. The policy matters because data centres are becoming a core part of digital infrastructure, but they also raise issues of electricity demand, land use, and environmental impact.
What the Gujarat policy offers
The policy provides incentives for large data centre projects, especially hyperscale users. It includes a subsidy on electricity, support for renewable power, exemptions or concessions on certain charges, and other fiscal benefits.
The Gujarat government has framed data centres as infrastructure that can support digital growth and the state’s industrial strategy. The policy also tries to balance expansion of digital capacity with energy and environmental concerns.
Why the policy is relevant for UPSC
The policy sits at the intersection of GS3 themes such as infrastructure, energy transition, industrial policy, and the digital economy. It is useful for questions on how states compete to attract investment, how power-intensive industries can be aligned with renewable energy, and how fiscal incentives shape industrial location decisions.
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