10 July 2026

Gujarat Data Centre Policy

The Gujarat Data Centre Policy is a specific state-level industrial and infrastructure policy that serves as a concrete example of government intervention in the digital infrastructure sector, which is highly relevant for GS2 and GS3.

Questions

1. Discuss the significance of state-level data centre policies in strengthening India's digital economy and achieving the goal of becoming a global hub for AI and cloud computing. 150 words
   Attempt this — 150 words in 8 min

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2. The rapid growth of data-intensive sectors necessitates robust digital infrastructure. Examine the role of fiscal and non-fiscal incentives in attracting private investment for hyperscale data centres in India. 250 words
   Attempt this — 250 words in 11 min

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Prelims

1. What is the primary target for data centre capacity under the Gujarat Data Centre Policy (2026-29)?

   1. A 12.5 GW
   2. B 5 GW
   3. C 7.5 GW
   4. D 10 GW

2. Which of the following is a specific incentive provided under the Gujarat Data Centre Policy to address the resource requirements of the sector?

   1. A Tax holiday on corporate income
   2. B Free land allocation in industrial zones
   3. C Financial assistance for captive desalination plants
   4. D Direct equity participation by the state government