Rajasthan no longer just a tourist spot: Inside Rs 43,000 crore push for India’s next data centre destination

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Rajasthan draws over Rs 43,000 crore in data centre investments as state govt bets big on AI, digital infrastructure pushThe Rajasthan government has received investment proposals worth more than Rs 43,000 crore in the data centre sector, Chief Minister Bhajanlal Sharma said, as the state positions itself as an emerging hub for Artificial Intelligence and digital infrastructure. He said the government is committed to making Rajasthan the country’s preferred destination for AI and data centre investments.

Addressing industry leaders at a round-table discussion held after the 29th National Conference on e-Governance at the Rajasthan International Centre, CM Sharma said the state is strengthening its digital backbone to realise the vision of “Viksit Bharat–Viksit Rajasthan 2047” under the leadership of Prime Minister Narendra Modi.

He said e-governance has already improved transparency in citizen-centric services, accelerated service delivery, reduced time and costs, strengthened record management and supported evidence-based policymaking.

Rs 1,000 crore investment gives Rajasthan’s startup base a strong boost

CM Bhajanlal Sharma said Rajasthan is no longer seen only as a tourism and heritage destination, but is increasingly becoming a key part of India’s digital future. He pointed out that the state has more than 100 universities and nearly 4,000 colleges, producing over 2.5 lakh graduates every year, which he described as one of Rajasthan’s greatest strengths.

He also highlighted the state’s startup ecosystem, saying the iStart initiative has supported more than 8,700 startups, attracted investments of over Rs 1,000 crore and generated over 48,000 direct jobs. The Chief Minister said this ecosystem is becoming an important pillar of the state’s broader digital and innovation strategy.

 

AI Centre Of Excellence

The state also plans to strengthen collaboration among industry, startups, academia and government through its proposed AI Centre of Excellence. CM Sharma noted that ST Telemedia Global Data Centres (STT GDC) has already established an AI-ready data centre in Jaipur, while companies such as HG Akaya, Nayo Bolt and Ztudium have also proposed investments in Rajasthan.

Policy support for new sectors in Rajasthan

Rajasthan is also developing progressive policies for emerging sectors such as AI, data centres, Global Capability Centres, drones and geospatial technology. Chief Minister Sharma said the state’s abundant green energy, competitive operating costs and transparent governance make it an attractive investment destination.

To encourage startups, the government has removed key barriers in public procurement, including mandatory prior experience and minimum turnover requirements, making it easier for new enterprises to participate in government projects. He invited entrepreneurs to view Rajasthan not only as an investment destination but also as a long-term partner in research, innovation, employment generation and future technologies.

During the round-table discussion, industry leaders and experts shared suggestions on AI, data centres, cloud computing, quantum computing, semiconductors and the startup ecosystem. The event was attended by Information Technology and Communication Minister Colonel Rajyavardhan Singh Rathore, Parliamentary Affairs Minister Jogaram Patel, Chief Secretary V Srinivas, IT and Communication Secretary Ravi Kumar Surpur, senior officials from the Industries and Commerce Department and representatives from leading technology companies.

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