The Uttar Pradesh government recently said that its Data Centre Policy 2026 has already produced an investor pipeline that exceeds twice its baseline target of 2 gigawatts (GW), with formal land allotments and power sanctions being finalised ahead of commercial operations.
To reduce concentration of digital infrastructure in the western National Capital Region (NCR), the state is developing an expressway‑linked network of data centre clusters across Bundelkhand, Purvanchal and other emerging regions. The government has allocated Rs 100 crore in the State Budget 2026–27 to support a distributed model intended to attract hyperscale investment and promote balanced regional growth, a senior state official said.
The Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) has identified Integrated Manufacturing & Logistics Cluster (IMLC) sites at Badaun, Shahjahanpur, Firozabad, Etawah, Amethi, Sultanpur, Ghazipur, Banda, Jalaun and Ambedkar Nagar. The Bundelkhand Industrial Development Authority (BIDA) has earmarked additional sites in Jhansi.
Responding to questions about the viability of the Rs 2 lakh crore investment target, the official said the state is carrying forward about 644 megawatts (MW) of committed capacity from the previous policy period, and has secured fresh memorandums of understanding (MoUs) with international firms. “Our current investor interest reflects a pipeline that is more than 2x times the baseline targets. Land allotments and power sanctions are formalized before the issuance of the Letter of Comfort. This phased approach provides a credible pathway for translating the proposal pipeline into commissioned capacity while maintaining implementation discipline,” the official said.
The policy requires projects to begin operations within three years of receiving the Letter of Comfort. Larger projects committing 200 MW or more are eligible for a two‑year extension.
The government projects the policy will generate nearly 50,000 construction jobs and about 7,500 long‑term direct positions. Officials said local hiring and workforce development will be linked to project facilitation and tailored incentives. “We will align skilling institutions with industry needs through specialized curricula and apprenticeships to ensure these translate into high‑value local jobs,” the official added.
The policy also sets an energy target, mandating that new data centres adopt at least 50% renewable energy by 2030. Officials described data centres as foundational to artificial intelligence, cloud services and Global Capability Centres (GCCs), and said measures such as AI Compute Booster Incentives and green‑certified facility requirements are intended to help the state capture a larger share of the digital infrastructure and technology value chain.
Separately, the state plans to use public procurement preferences for cloud storage to strengthen the operating environment for enterprise technology and cybersecurity professionals.