Uttar Pradesh Targets 2GW Additional Data Centre Capacity by 2030, Plans New Investor-Friendly Policy

Uttar Pradesh is aiming to add more than 2GW of data centre capacity by 2030 as it looks to strengthen its position in India's rapidly expanding digital infrastructure market. Chief Minister Yogi Adityanath has directed officials to draft a new data centre policy focused on attracting fresh investments, supporting AI infrastructure, and promoting green data centres.

During a review of the state's Data Centre Policy 2021, Adityanath said data, artificial intelligence (AI), and digital infrastructure would form the foundation of the future economy, adding that Uttar Pradesh must begin preparing now to emerge as a leader in the sector.

The proposed policy is expected to offer a more attractive and practical framework for investors than the current one. The Chief Minister said it should prioritise AI-enabled data centres, environmentally sustainable facilities, world-class digital infrastructure, faster approvals, a reliable power supply, and stronger connectivity.

State Eyes Bigger Role in India's Data Centre Market

According to the state's IT and Electronics Department, Uttar Pradesh is expected to account for around 8-9% of India's total data centre capacity by 2026.

Under the Data Centre Policy 2021, the state had set a target of developing 900MW of capacity while attracting investments worth ₹30,000 crore. Officials said investment proposals worth ₹21,342.9 crore have already been approved, with Letters of Comfort issued to investors.

Currently, Uttar Pradesh has six operational data centre parks and two standalone data centre facilities. Work is underway on projects representing a committed capacity of 644MW.

AI Infrastructure and Green Data Centres in Focus

A key feature of the upcoming policy could be additional incentives for AI-focused infrastructure.

Adityanath directed officials to create a dedicated incentive framework for high-capacity AI computing infrastructure, stating that data centre parks developing advanced AI computing resources should receive extra benefits.

The state is also looking to encourage sustainable infrastructure development. Data centre operators that achieve advanced green certifications could qualify for additional financial incentives under the new policy.

Officials are also evaluating enhancements to existing incentives related to land acquisition, capital subsidies, loans, stamp duty, electricity duty, transmission charges, and wheeling charges.

₹4.9 Lakh Crore Investment Potential

Beyond currently approved projects, Uttar Pradesh is witnessing significant interest from domestic and international investors.

Officials informed the Chief Minister that investors have expressed interest in developing data centres with a combined capacity of 5,410MW across the state. These proposals could attract investments worth nearly ₹4.9 lakh crore.

Companies exploring opportunities in the state include AM Green, Trifecta Connex, Essar, Groo Energy, Golden State Capital, Mapletree, CtrlS, and Nxtra.

Several major projects are already being developed by companies such as Hiranandani Group, NTT Global Data Centres, Adani Group, ST Telemedia, SKVR Software Solutions, Web Werks, and Sify.

While Noida and the Yamuna Expressway region continue to remain key hubs for data centre development, the state government is also looking to expand investments into cities including Lucknow, Varanasi, Prayagraj, Meerut, and Sitapur.

"Data centre development should not remain confined to the NCR region alone," Adityanath said, adding that new clusters should be developed across multiple cities so that digital investments and employment opportunities can reach a wider section of the state.