UP Clears Data Center Policy, Targets $23 Billion Investment
Uttar Pradesh’s new policy seeks to attract ₹2 trillion in investment and add 2 GW of data centre capacity, with a focus on AI-ready and green digital infrastructure.
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The Uttar Pradesh Cabinet on Monday approved the Uttar Pradesh Data Center Policy 2026, targeting more than ₹2 trillion, or about $23 billion, in investment and 2 GW of data center capacity as the state seeks to build AI-ready and green digital infrastructure.
The policy, approved at a Cabinet meeting chaired by Chief Minister Yogi Adityanath, replaces the Uttar Pradesh Data Center Policy 2021, which had helped the state attract approved data center proposals worth ₹21,343 crore and 644 MW of capacity as of June 2025, according to the state’s data center portal.
The government said the new policy is aimed at strengthening digital infrastructure, supporting innovation and positioning Uttar Pradesh as a competitive technology destination.
It also links the push to the state’s broader goal of becoming a $1 trillion economy.
IT and Electronics Minister Sunil Sharma said the policy focuses on GPU-based infrastructure, energy-efficient facilities and sustainable operations, Moneycontrol reported.
It includes incentives for Tier III and IV data centers, AI Compute Booster support and green data center operations.
Additional incentives have also been proposed for projects in Bundelkhand and Purvanchal.
The state expects the policy to create about 7,500 long-term direct jobs and nearly 50,000 short-term jobs during the construction phase.
Under the earlier policy, Uttar Pradesh has operationalized seven data center projects that are part of six approved data center parks and two standalone data center units, involving investments of ₹21,343 crore, Sharma said.
The Cabinet also approved the Uttar Pradesh Startup Policy 2026, aimed at expanding support for startups and deep-tech ventures.
The policy includes a ₹1,000-crore startup fund, stronger incentives for emerging technology companies and plans to establish 20 Centers of Excellence in areas such as artificial intelligence, robotics, quantum technologies and space technologies.
The Cabinet also cleared the creation of a dedicated Startup Mission Directorate under the Department of IT and Electronics to improve coordination across the startup ecosystem. Uttar Pradesh currently has about 17,000 registered startups.
