Uttar Pradesh builds on Datacentre, AI and Data-Driven Growth
Friday, February 13, 2026
The Government of Uttar Pradesh has outlined a clear and time-bound approach to position the state at the centre of India’s data economy.
Globally, datacentre capacity today stands heavily concentrated in a few regions. The United States has over 5,300 datacentres with an installed capacity of around 54 gigawatts. China has developed approximately 20 gigawatts, while Europe has about 13 gigawatts. India, despite generating nearly 20 percent of the world’s data, currently has only about 1.6 gigawatts of operational capacity, with another 1.7 gigawatts under construction. This imbalance has both economic and strategic implications. Continue
The state has proposed the development of large-scale Datacentre Clusters, with a first-phase target of 5 gigawatts capacity by 2030. Looking ahead, a longer-term vision has been articulated to reach 40 gigawatts by 2047. The intent is to develop 4–5 major clusters, each of substantial scale, so that the state does not miss this technological cycle, as has happened in earlier waves of computing and internet infrastructure globally.
Datacentres require reliable and affordable power, adequate land, skilled manpower and sufficient water for cooling. Uttar Pradesh has these fundamentals in place. However, availability of resources alone does not automatically bring investment. Speed, coordination and clarity of policy will matter. It has also been noted that once large datacentre ecosystems are established in other geographies, it becomes difficult to attract such investments later. Therefore, timely execution is critical.
Investment requirements in this sector are significant. Construction costs range from Rs 35–40 crore per megawatt. When electronic equipment and GPUs are included, total investment may reach Rs 70–80 crore per megawatt. Given this scale, hyperscaler agreements with companies such as Google, Microsoft, Amazon Web Services, Meta, Apple and others are essential to ensure steady utilisation and viability. The state proposes active engagement with both investors and hyperscalers, supported by leading consulting firms, to prepare and implement a structured roadmap.
Alongside infrastructure creation, the development of integrated townships around datacentre clusters is also envisaged. For initiating this process, a budget provision of Rs 200 crore has been proposed, with the State Transformation Commission designated as the nodal agency. In the era of AI, data has strategic value comparable to oil during the industrial revolution. For Uttar Pradesh to achieve its target of becoming a one trillion dollar economy by 2029 and moving toward six trillion dollars by 2047, policy decisions must be grounded in accurate and real-time data.
At present, departmental data collection often remains fragmented. Repeated compilation at district and block levels leads to inconsistencies. In many instances, field realities and reported data do not align. Sample-based surveys continue to dominate assessment mechanisms, limiting the ability to generate precise, actionable insights at the local level.
The proposed State Data Authority will address these structural gaps. It will work toward real-time, standardised and beneficiary-level data collection, integration across departments, and creation of a unified state-level data architecture. The objective is straightforward better data, better planning, better outcomes.
The Authority will function under the State Transformation Commission, with a proposed budget provision of Rs 100 crore in FY 2026–27. Taken together, the Datacentre Clusters initiative and the State Data Authority represent two complementary pillars of the same strategy. One builds the physical backbone of the digital economy. The other strengthens the governance backbone required to manage it.
