The Uttar Pradesh Data Centre Policy, 2021 was introduced on April 9, 2021, with a first amendment issued in 2022. According to reports from the Department of Information Technology and Electronics, the policy targets ₹30,000 crore investment and 900 megawatts of data centre capacity through at least eight private data centre parks. The policy framework is administered by the Department of Information Technology and Electronics, with implementation coordinated through a designated nodal agency and policy implementation unit.
The policy establishes three distinct categories of data centre facilities: data centre parks with minimum 40-mw capacity, data centre units with capacity above 2 mw but below 40 mw, and edge data centres with capacity from 50 kw to 2 mw. As reported by the Department of Information Technology and Electronics, eligible applicants include private data centre park developers, standalone data centre units, proposals containing at least 25 edge data centres, and Uttar Pradesh-based start-ups and micro, small and medium enterprises supplying cloud or data-centre solutions. The policy also extends benefits to institutions proposing approved centres of excellence.
According to the policy framework, data centre parks are eligible for up to 60% interest subsidy for seven years, capped at ₹10 crore annually and ₹50 crore per park. Parks also receive capital subsidy of 7% of eligible fixed capital investment, excluding land and buildings, capped at ₹20 crore. Land subsidies vary by region, with 25% in Madhyanchal and Paschimanchal, and 50% in Bundelkhand and Purvanchal. Data centre units qualify for 7% capital subsidy on eligible fixed capital investment, excluding land and buildings, capped at ₹20 crore. The policy also provides 100% stamp duty exemption on the first eligible land transaction and 50% on the second transaction.
As reported by the government in January 2026, six parks and two units have been approved, with seven projects currently operational. The policy provides regulatory facilitation including single-window processing through Nivesh Mitra portal, recognition of the sector as mission-critical infrastructure, and continuous water supply in industrial development authority areas. Additional benefits include sub-leasing within data centre parks, relaxations in parking, ground coverage and floor-area norms, three-shift operations and self-certification in specified areas. The policy also offers dual-grid support for the first eight parks and 100% electricity duty exemption for eligible units for ten years after commercial operation.
According to the policy framework, the initiative aims to establish Uttar Pradesh as a preferred destination for data centre investment, create large private data centre parks and standalone units, and improve availability of power, water, fibre connectivity and suitable land. However, as noted in the implementation report, key challenges include power requirements for large, dependable electricity supplies, water and environmental pressure from conventional cooling systems, and concentration risk due to weaker fibre connectivity and skilled workforce availability outside the National Capital Region. The policy also faces complex disbursement processes requiring multiple government orders and compliance verification.
