Lucknow: Uttar Pradesh is rapidly positioning itself as one of India’s most promising digital infrastructure hubs, driven by the state government’s forward-looking Data Centre Policy. Implemented in January 2021, the policy has not only met its initial targets ahead of schedule but has also laid the foundation for large-scale investments, significantly boosting the state’s digital economy.
Under the leadership of Chief Minister Yogi Adityanath, Uttar Pradesh has created an investor-friendly ecosystem marked by transparent governance, policy stability, and a strong law-and-order framework. These factors have played a decisive role in building investor confidence, particularly in capital- and technology-intensive sectors such as data centres.
Early Targets Achieved, Ambitions Expanded
The Data Centre Policy was introduced with the objective of developing modern, privately operated data centre parks and strengthening the digital infrastructure backbone of the state. In its initial phase, the government set a target of developing three data centre parks with a combined capacity of 250 megawatts (MW).
Remarkably, these goals were achieved within the first year of implementation, prompting the state government to revise and scale up the policy. The amended policy significantly enhanced investment and capacity targets, reflecting the growing interest of domestic and global investors.
Under the revised roadmap, the state now aims to establish eight data centre parks, supported by an estimated investment of ₹30,000 crore, and develop a total capacity of 900 MW—a move that has surprised industry observers and reinforced Uttar Pradesh’s digital ambitions.
Investments Gain Momentum
So far, the state government has approved data centre investments worth approximately ₹21,343 crore. These approvals include six large data centre parks and two smaller data centre units with capacities below 40 MW. Of these, seven projects are already operational, significantly strengthening Uttar Pradesh’s digital processing and data storage capabilities.
Officials attribute this progress to the state’s clear policy framework, streamlined approval mechanisms, and a secure business environment. The growing trust of investors in a sector that demands long-term capital commitment is seen as strong validation of the policy’s effectiveness on the ground.
Global Investor Confidence
Uttar Pradesh’s rising stature as a digital and investment destination was further highlighted during the Global Investors Summit held in Lucknow in February 2023. During the summit, the state signed 29 Memoranda of Understanding (MoUs) for investment projects worth a total of ₹1.36 lakh crore, showcasing its potential on a global platform.
The data centre sector featured prominently among the focus areas, aligning with India’s broader Digital India vision and the increasing demand for secure, scalable data infrastructure.
Laying the Groundwork for a Digital Future
With the expansion of data centre parks, Uttar Pradesh is not only strengthening its digital infrastructure but also creating opportunities for employment, innovation, and allied industries such as cloud services, fintech, e-governance, and artificial intelligence.
Overall, the Data Centre Policy has emerged as a game-changer, firmly placing Uttar Pradesh on the path to becoming a leading digital power centre of India. As investments continue to flow and projects become operational, the state is poised to play a pivotal role in shaping the country’s digital future.
