Summary: The Gujarat Government has unveiled the Viksit Gujarat Data Center Policy 2026-2029 (“Policy”), to promote hyperscale and colocation data centers in the state, marking a significant shift from its earlier incentive regime for data center projects under the IT/ITES Policy 2022-2027. While the previous framework supported relatively smaller projects through a limited capital and power subsidy model, the new Policy is designed for hyperscale/ large data center developments with a minimum installed IT load capacity of 150 MW. It introduces a substantially enhanced incentive package comprising long-term power-related benefits, interest subsidies, GST reimbursements, support for allied infrastructure such as battery energy storage systems and desalination plants, and various regulatory relaxations. With this Policy, Gujarat aims to attract hyperscale/ large, capital-intensive data center projects and compete with other leading data center hubs in the country.