Gujarat’s ambitious data centre policy, aimed at attracting Rs 6 lakh crore in investments, could create demand for nearly 45 GW of additional solar power by FY35, according to a report by Nuvama Institutional Equities. The brokerage estimates that mandatory renewable energy sourcing under the policy could significantly boost India’s clean energy capacity while lowering electricity costs for data centre operators by as much as 22 per cent.
The state’s recently unveiled policy targets the development of 7.5 GW of hyperscale data centre capacity and requires operators to source at least 51 per cent of their electricity from renewable energy. Analysts believe the move will strengthen Gujarat’s position as a leading hub for artificial intelligence (AI), cloud computing and digital infrastructure while supporting India’s energy transition goals.
Renewable Energy Set For Major Boost
According to Nuvama, the renewable energy mandate could reduce operating expenses for data centres by around 22 per cent compared to conventional grid power. The brokerage estimates that meeting the state’s projected data centre demand would require nearly 45 GW of new solar capacity by FY35, creating significant opportunities for renewable energy developers, power equipment manufacturers and transmission companies.
The report also highlights that Gujarat’s policy offers incentives including capital subsidies, electricity duty exemptions and support for green infrastructure, making the state an attractive destination for domestic and global data centre investments. Rising demand from AI workloads, cloud services and digital businesses is expected to further accelerate the expansion of hyperscale facilities across the state.
Industry observers believe the policy could have a multiplier effect on India’s renewable energy ecosystem by driving investments in solar parks, battery energy storage systems and transmission infrastructure. Companies engaged in solar modules, power generation and engineering, procurement and construction (EPC) services are expected to benefit from the increased demand.Analysts note that Gujarat’s integrated approach to digital infrastructure and clean energy aligns with India’s broader objectives of expanding renewable capacity while establishing itself as a global technology and AI hub. If implemented successfully, the policy could reshape both the country’s data centre and renewable energy landscape over the next decade.
