The state government aims to strengthen its position as a digital infrastructure hub through a revamped data centre policy focused on AI-ready facilities, green infrastructure, investment incentives, and expansion beyond the NCR region.
The Uttar Pradesh government is preparing a new data centre policy aimed at accelerating investments in digital infrastructure, with Chief Minister Yogi Adityanath setting a target of creating more than 2 GW of additional data centre capacity in the state by 2030.
During a review meeting of the Uttar Pradesh Data Center Policy-2021, the Chief Minister directed officials to draft a revised framework that better aligns with industry requirements and investor expectations while supporting the state's ambitions in artificial intelligence and digital infrastructure.
He underlined the strategic importance of data and AI in driving future economic growth, saying, "Data, Artificial Intelligence (AI), and digital infrastructure are the key foundations of the future economy. Therefore, Uttar Pradesh must begin making concrete preparations now to assume a leading role in this sector."
The proposed policy is expected to focus on attracting investments in AI-enabled data centres, energy-efficient facilities, and sustainable digital infrastructure. Officials have also been asked to incorporate provisions for faster approvals, reliable power availability, and improved connectivity to enhance the state's attractiveness for investors.
State sees strong momentum in data centre investments
According to the IT and Electronics Department, Uttar Pradesh is projected to account for around 8-9 percent of India's total data centre capacity by 2026. Under the existing Data Center Policy-2021, the state had targeted 900 MW of capacity and investments worth ₹30,000 crore.
Officials informed the meeting that investment proposals valued at ₹21,342.90 crore have already received approvals, with Letters of Comfort issued to participating investors. Currently, six data centre parks and two standalone facilities are operational, while projects representing 644 MW of committed capacity are under development.
Reviewing the contours of the upcoming policy, the Chief Minister called for stronger incentives related to land acquisition, capital support, financing, and concessions on stamp duty, electricity duty, transmission charges, and wheeling charges. He also directed officials to create a dedicated incentive structure to encourage deployment of high-capacity AI computing infrastructure.
The Chief Minister said, "Data center parks establishing advanced AI computing resources in accordance with prescribed standards should be provided additional benefits, thereby accelerating the development of AI-driven digital infrastructure in the state."
Focus on AI infrastructure and regional expansion
The government is also seeking to promote environmentally sustainable growth within the sector. Highlighting the importance of green infrastructure, Adityanath said, "Units and parks achieving high-level green data center certifications should be provided additional financial incentives."
Officials noted that major companies, including Hiranandani Group, NTT Global Data Centers, Adani Group, ST Telemedia, WebWerks and Sify are currently implementing projects in the state.
The meeting also reviewed prospective investments that could add 5,410 MW of data centre capacity and attract nearly ₹4.90 lakh crore in investments. Proposed projects have been linked to investors such as AM Green, Essar, CtrlS and Nxtra.
Emphasising balanced regional development, the Chief Minister said, "Data center development should not remain confined to the NCR region alone. Data center clusters should also be developed in other suitable cities and regions across the state so that the benefits of digital investments and employment opportunities can reach a larger part of Uttar Pradesh."
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