UP Data Centre Policy 2026: Complete Guide
What Is the Policy?
The Uttar Pradesh Data Centre Policy, 2026 replaces the Data Centre Policy 2021 (amended November 2022), which expired on 27 January 2026. It runs under the IT & Electronics Department and targets an additional 2 GW of data centre capacity and investment exceeding ₹2 lakh crore.
What's New Compared to the 2021 Policy?
- Explicit emphasis on GPU-based / AI-ready infrastructure
- Stronger focus on energy efficiency and sustainability
- Dedicated incentives for Tier III and Tier IV facilities
- A new "AI Compute Booster" initiative
- Green data centre operation incentives
Key Incentives
| What | Details |
|---|---|
| Land subsidy | Applies to eligible data centre projects |
| Capital subsidy | Applies to eligible data centre projects |
| Stamp duty exemption | On land/lease documentation |
| Electricity duty exemption | Applies to eligible projects |
| Power tariff relief | Open access and dual power source facilitation; deemed industry status for power tariff purposes |
| Regional weighting | Additional benefits for projects in Bundelkhand and Purvanchal |
Eligibility
- Data centre park developers and standalone data centre operators
- Meeting minimum IT load and investment thresholds set by the policy
What the 2021 Policy Achieved
Six data centre parks and two standalone units were approved, with seven projects operational, involving investment of approximately ₹21,343 crore — largely concentrated in the Noida–Greater Noida belt.
Employment Expected
Roughly 7,500 direct long-term jobs and around 50,000 temporary jobs during construction and development, per the state's own estimate.
Why Gautam Buddh Nagar Stays the Natural Hub
Because incentives are largely uniform statewide, the district's power, fibre, and land advantages aren't offset by regional gradation, and the existing cluster gives new projects agglomeration benefits.
Frequently Asked Questions
Is there a separate data policy too?
Yes — the Cabinet also approved a data policy for the Electronics Department covering data governance, data security, and local data storage, relevant to clients evaluating data localisation requirements.
Does the policy specifically support AI/GPU infrastructure?
Yes — this is one of the biggest changes from 2021, with an explicit "AI Compute Booster" initiative and emphasis on GPU-based, AI-ready infrastructure.
Setting up a data centre project in UP?
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Official portal: niveshmitra.up.gov.in Last reviewed: Aug 2026
This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.