How Uttar Pradesh will become country's largest hub for digital infrastructure; Yogi tells how new policy will further boost investment?
Lucknow: Uttar Pradesh is gearing up to become the country's largest hub for digital infrastructure. On Sunday, CM Yogi Adityanath directed officials to develop over 2 gigawatts of additional data center capacity in the state by 2030.
He stated that data, artificial intelligence (AI), and digital infrastructure are set to become the backbone of the future economy; therefore, UP must play a leading role in this race.
Make the new policy more attractive, practical, and contemporary: CM
Yogi was reviewing the Uttar Pradesh Data Center Policy-2021. He instructed the IT and Electronics Department to make the new policy more attractive, practical, and contemporary, aligning it with the expectations of investors.
New policy will prioritize AI-based data centers
The new policy will prioritize AI-based data centers, energy-efficient and eco-friendly green data centers, world-class digital infrastructure, a fast-track approval system, uninterrupted power supply, and enhanced connectivity.
The Principal Secretary (IT) informed that the Policy-2021 had set a target of 900 MW capacity and an investment of Rs 30,000 crore. So far, investment proposals worth Rs 21,342.90 crore have been approved, and 'Letters of Comfort' have been issued to investors.
Six data center parks and two units are operational in the state
Currently, six data center parks and two units are operational in the state, while work is underway on a committed capacity of 644 MW. UP's share in the country's total data center capacity is projected to reach 8-9 percent by 2026.
CM Yogi directed that concessions regarding land, capital, and loan subsidies—as well as stamp duty, electricity duty, and transmission and wheeling charges—be made more effective.
Additional incentives to data center parks
Yogi stated that additional incentives should be provided to data center parks establishing AI-based high-performance computing infrastructure to accelerate the development of an AI-based digital ecosystem in the state. Emphasizing green and sustainable development, the Chief Minister stated that units achieving high-level green data center certification should receive additional financial incentives.
It was reported during the meeting that projects by companies such as Hiranandani Group, NTT Global Data Centers, Adani Group, ST Telemedia, SKVR Software Solutions, Web Werks, and Sify are currently underway.
Regarding potential investment proposals, various national and international investors have shown interest in developing data centers with a total capacity of 5,410 MW, with an estimated investment inflow of approximately Rs 4.90 lakh crore.
Companies such as AM Green, Trifecta Connex, Essar, Gru Energy, Golden State Capital, Mapletree, CtrlS, and Nxtra are exploring opportunities in Noida, the Yamuna Expressway region, Lucknow, Varanasi, Prayagraj, Meerut, and Sitapur.
The CM clarified that data center development should not be limited to the NCR alone; data center clusters should also be developed in other suitable cities across the state to ensure that digital investments and employment opportunities reach more regions.