UP Targets Additional 2 GW Data Center Capacity by 2030; New Investor-Friendly Policy on the Anvil

New Delhi, June 8: Chief Minister Yogi Adityanath has set a target of developing more than 2 GW of additional data center capacity in Uttar Pradesh by 2030. He said, “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.”

During a review of the Uttar Pradesh Data Center Policy-2021, the Chief Minister directed officials to formulate a new policy that is more attractive, practical, and aligned with investors’ expectations.

He emphasized that the proposed policy should prioritize AI-enabled data centers, energy-efficient and environmentally sustainable green data centers, world-class digital infrastructure, fast-track approval mechanisms, uninterrupted power supply, and enhanced connectivity, so that Uttar Pradesh can emerge as the most preferred destination for data center investments in the country.

The Principal Secretary, IT and Electronics, informed the Chief Minister that Uttar Pradesh is expected to account for approximately 8 to 9 percent of the country’s total data center capacity by 2026.

He noted that under the Data Center Policy-2021, the state had set a target of developing 900 MW of capacity and attracting investments worth ₹30,000 crore. Against this target, investment proposals worth ₹21,342.90 crore have already been approved, and Letters of Comfort have been issued to investors.

At present, six data center parks and two standalone data center units are operational in the state, while work is progressing on a committed capacity of 644 MW.

Discussing various provisions of the proposed new Data Center Policy, the Chief Minister stated that incentives related to land, capital, and loans, along with concessions on stamp duty, electricity duty, transmission charges, and wheeling charges, should be made even more effective.

He also directed officials to develop a special incentive framework to promote high-capacity AI-based 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.”

Highlighting the importance of green and sustainable growth in the data center sector, the Chief Minister said, “Units and parks achieving high-level green data center certifications should be provided additional financial incentives.”

Officials informed the meeting about the progress of ongoing projects in the state, noting that several major companies, including the Hiranandani Group, NTT Global Data Centers, Adani Group, ST Telemedia, SKVR Software Solutions, WebWerks, and Sify, are currently implementing projects. These initiatives are contributing significantly to the development of large-scale digital infrastructure in Uttar Pradesh.

The meeting also reviewed potential investment proposals. Officials stated that several national and international investors have expressed interest in developing data centers with a combined capacity of 5,410 MW in the state. These projects are expected to attract potential investments of approximately ₹4.90 lakh crore.

Proposed investments include projects from major investors such as AM Green, Trifecta Connex, Essar, Groo Energy, Golden State Capital, Mapletree, CtrlS, and Nxtra, among others.

Opportunities for these investments are being developed across various locations, including Noida, the Yamuna Expressway region, Lucknow, Varanasi, Prayagraj, Meerut, and Sitapur.

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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