The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, on Monday approved the Uttar Pradesh Data Center Policy 2026, aiming to make the state a leading Green and AI-ready data centre hub.
The new policy replaces the previous one, which expired in January this year, and seeks to attract investments of more than Rs 2 lakh crore while adding 2 Gigawatts of data centre capacity.
The government said the policy will strengthen Uttar Pradesh’s digital infrastructure, encourage innovation and support the state’s goal of becoming a globally competitive technology destination. It also offers additional incentives for projects coming up in Bundelkhand and Purvanchal.
Focus On AI, Green Tech And Investment
IT and Electronics Minister Sunil Sharma said the policy gives special importance
to GPU-based infrastructure, energy-efficient facilities and sustainable operations. It also includes incentives for Tier III and Tier IV data centres, AI Compute Booster support and benefits for green data centre operations.
The government expects the policy to encourage the development of a world-class data centre ecosystem in the state. It believes that more information technology and IT-enabled businesses will come up around these facilities, creating fresh opportunities for investment and innovation.
The policy is expected to generate around 7,500 long-term direct jobs and nearly 50,000 short-term jobs during the construction phase.
Existing Projects And Future Growth
The minister said Uttar Pradesh has already made significant progress under the previous Data Center Policy introduced in 2021. So far, seven projects have become operational under the earlier policy, out of six approved data centre parks and two standalone data centre units involving investments of around Rs 21,343 crore.
The government expects the new policy to build on this momentum by attracting more technology companies and expanding digital infrastructure across the state.
In a separate decision, the Cabinet also approved a financial proposal for Panchayati Raj Institutions for the financial year 2026-27.
A total of Rs 14,988.50 crore has been allocated under the State Finance Commission for panchayats at all three levels. The funds will be used for administrative expenses, maintenance work, honorariums for elected representatives and implementation of schemes, including the Swachh Bharat Mission (Gramin).
