UP Cabinet Approves AI-Ready Data Center Policy 2026 to Attract ₹2 Lakh Crore Investment

Uttar Pradesh Cabinet led by Yogi Adityanath, the Chief Minister of Uttar Pradesh, has sanctioned the Uttar Pradesh Data Centre Policy 2026, which is intended to place Uttar Pradesh firmly on the global data centre map, making it the most favored site for green and AI-enabled data centres. The policy envisages attracting investments of more than ₹2 lakh crores while also increasing the data centre capacity to 2 GW and improving the digital infrastructure of the state.

What is the UP Data Center Policy 2026?

The UP Data Center Policy 2026 has been framed to be the first major policy of Uttar Pradesh for promoting capital investment into advanced data center infrastructure.

The UP Data Center Policy 2026 refreshes and introduces a new data center policy framework with respect to the now expired UP Data Center Policy 2021 which became inactive in January 2026.

Key Highlights of UP Data Center Policy 2026

The policy has set ambitious targets along with offers of various incentives,

• An investment target of ₹2 lakh crore.
• 2 GW capacity of data centres to be added.
• Infrastructures being built are AI-ready and green data centres.
• With these facilities, UP will also promote energy-efficient regulations for infrastructure.
• Special incentives for GPU-based technologies will be given.
• There will be additional subsidies for ventures situated in Bundelkhand and Purvanchal.
• Help will be extended to Tier III and Tier IV data centres in the state.
• The policy also aims to ensure sustainable and eco-friendly operations.

Employment Opportunities

It is estimated by the government that the above-mentioned policy will result in the creation of a number of jobs.

The expected number of jobs includes,

• Nearly 7,500 job opportunities in operations and maintenance.
• Almost 50,000 job opportunities during construction and development stage of the development.

Apart from job creation in direct employment, it is believed that the policy will help in the development of IT services, cloud computing, logistics, facilities management and other related industries.

Building Word Class Infrastructure

The government believes the policy will boost the establishment of a competitive international digital environment.

The advantages are,

• Attracting global technology firms.
• Increasing the IT and ITeS sector.
• Building cloud-based platforms.
• Boosting innovation in the digital space.
• Creating a better investment climate.
• Enhancing the provision of digital services.

Further, a good data centre ecosystem will also help new waves of industries like fintech, AI, e-commerce, e-health, and digital governance.