Sector profile

Data centres

Data centres are the physical base of India's digital economy: cloud, payments, AI and government services all run on them. Uttar Pradesh, with its Noida–Greater Noida cluster, has a dedicated 2026 policy for this power-intensive sector.

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Rows of server racks in an Indian Railways server room — Photo: Indrajit Das via Wikimedia Commons, CC BY-SA 3.0

Importance to the Indian economy

Demand for data centre capacity follows the growth of digital services. India's exports of telecommunication, computer and information services reached US$ 206.6 billion in 2025-26 (RBI data, via PIB), and the domestic use of cloud and digital payments keeps rising.

Data centres need land, reliable dual-grid power, water and fibre connectivity. State incentives on land, stamp duty, electricity duty and transmission charges therefore have a direct effect on the cost of a project.

The last three years in official data

Figures as published by the Government of India source linked against each year. We do not estimate or fill gaps.

Exports of telecommunication, computer and information services (demand context)US$ billion

2023-24

US$ 163.6 bn

2024-25

US$ 183.3 bn

2025-26

US$ 206.6 bn

Bars start at zero and are scaled to the largest value shown.

Year	Value (US$ billion)
2023-24	US$ 163.6 bnSource: PIB, 24 Jul 2026 (PRID 2288851), RBI data
2024-25	US$ 183.3 bnSource: PIB, 24 Jul 2026 (PRID 2288851), RBI data
2025-26	US$ 206.6 bnSource: PIB, 24 Jul 2026 (PRID 2288851), RBI data

What is not shown, and why: The Government of India does not publish an official year-wise series of installed data centre capacity (MW) that we could verify. We show digital services exports as context instead and do not quote industry estimates of capacity.

UP incentives for this sector

The Uttar Pradesh policy that applies to this sector, with the main incentives as stated in the policy or on Invest UP. Rates, caps and eligibility conditions are summarised; the policy text and its guidelines decide each case.

In force

Uttar Pradesh Data Centre Policy 2026

Approved by the State Cabinet on 6 Jul 2026; valid for five years; replaces the Data Centre Policy 2021 (First Amendment 2022)

Incentive	Support (as per the policy)
Data centre parks (40 MW and above)	Interest subsidy up to ₹50 crore
Data centre units (2–40 MW)	Capital subsidy up to ₹20 crore
Land	25% subsidy in Madhyanchal/Paschimanchal; up to 50% in Bundelkhand/Purvanchal
Duties and power	100% stamp duty; 100% electricity duty for 10 years; up to 100% exemption on transmission/wheeling charges
Edge data centres	Qualify with at least 10 sites of 50 kW or more (2 MW cumulative)

The Data Centre Policy 2021 is superseded; projects should be evaluated under the 2026 policy.

Source: Invest UP policy page; Policy document (PDF)

IT, ITeS & GCC sector

Sources

Scheme terms change; verify on the official portal; last checked 4 Oct 2026. This page is general information for planning, not a guarantee of eligibility, sanction or disbursement. See our Terms of Use & Disclaimer.

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