The chief minister of Uttar Pradesh has set a target of developing more than 2 gigawatts of additional data centre capacity in the state by 2030, asserting that data, artificial intelligence (AI) and digital infrastructure are the foundational pillars of the future economy.

During a review of the Uttar Pradesh Data Centre Policy 2021, the chief minister directed officials to formulate a new policy that is more attractive, practical and aligned with investor expectations. He emphasised that the proposed policy should prioritise AI-enabled data centres, energy-efficient and environmentally sustainable green data centres, world-class digital infrastructure, fast-track approvals, uninterrupted power supply and enhanced connectivity, positioning Uttar Pradesh as the most preferred destination for data centre investments in the country.

At the meeting, the principal secretary for IT and electronics informed the chief minister that the state is expected to account for approximately 8-9 per cent of the country’s total data centre capacity by 2026. Under the Data Centre Policy 2021, the state had set a target of developing 900 megawatt (MW) of capacity and attracting investments worth Rs 300 billion. Against this, investment proposals worth Rs 213.42 billion have already been approved and letters of comfort issued to investors. Six data centre parks and two standalone data centre units are currently operational, with work progressing on a committed capacity of 644 MW.

On the proposed new policy, the chief minister said incentives related to land, capital and loans, along with concessions on stamp duty, electricity duty, transmission charges and wheeling charges, should be made more effective. He also directed officials to develop a special incentive framework to encourage the establishment of high-capacity AI-based computing infrastructure.