UP Approves New Data Center Policy

The Uttar Pradesh government has approved the new Data Center Policy-2026, aiming to develop the state as a Green, AI-ready, and globally competitive Data Center hub. The policy, approved in a Cabinet meeting chaired by Chief Minister Yogi Adityanath, sets a target to develop an additional capacity of 2 Gigawatts and attract investment of more than ₹2 lakh crore.

According to IT and Electronics Minister Sunil Sharma, the new policy emphasizes GPU-based infrastructure, energy efficiency, and sustainable development. The policy includes provisions such as incentives for Tier/Rating-3 and 4 Data Centers, AI Compute Booster incentives, and Green and Sustainable Operations incentives. Extra incentives have been proposed for the Bundelkhand and Purvanchal regions.

The establishment of a world-class Data Center ecosystem in the state is expected to increase employment opportunities. The proposed policy is expected to generate long-term direct employment for 7,500 people and short-term direct employment for approximately 50,000 people during the construction period.

The previous Data Center Policy-2021, implemented in January 2021 and amended in November 2022, had already led to the operationalization of 7 projects out of 6 Data Center Parks and 2 Data Center units with a capacity of less than 40 Megawatts, involving an investment of approximately ₹21,343 crore.

In addition to the Data Center Policy, the Cabinet also approved a proposal relating to the financial requirements of Panchayati Raj Institutions. A provision of ₹14,988.50 crore has been made under the State Finance Commission for Panchayats at all three tiers during the financial year 2026-27. Ten percent of this amount, approximately ₹1,498 crore, will be spent on administrative, operational, and maintenance expenses, including ₹495.89 crore for honorarium and meeting allowances for Panchayat representatives.

The approval of the new Data Center Policy and the allocation of funds for Panchayats are expected to have a significant impact on the state's economy and development. The policy is expected to attract major investments and create employment opportunities, while the allocation of funds for Panchayats will support the development of rural areas.

The Uttar Pradesh government's focus on developing the state as a hub for data centers and IT industries is in line with its efforts to promote economic growth and development. The new policy and the allocation of funds for Panchayats are expected to contribute to the state's overall development and prosperity.

In the coming months, the state government is expected to take further steps to implement the new Data Center Policy and allocate funds for Panchayats. The government will also monitor the progress of the policy and make necessary adjustments to ensure its successful implementation.

The impact of the new policy on the state's economy and development will be closely watched by experts and stakeholders. The policy's emphasis on sustainability and AI-ready infrastructure is expected to attract major investments and create employment opportunities, contributing to the state's overall growth and development.

Overall, the approval of the new Data Center Policy and the allocation of funds for Panchayats are significant developments for the state of Uttar Pradesh. The policy and the allocation of funds are expected to have a positive impact on the state's economy and development, and will contribute to the state's overall growth and prosperity.