Artificial Intelligence is already transforming industries worldwide. In this evolving scenario, data centres are more than just infrastructure—they act as the production hubs of digital intelligence. Recognizing this shift, the Government of Uttar Pradesh has laid out a clear, time-bound strategy to make the state a key player in India’s data economy.
Globally, data centre capacity is highly concentrated in select regions. The United States leads with over 5,300 data centres totaling around 54 gigawatts. China follows with roughly 20 gigawatts, and Europe has about 13 gigawatts. Despite generating nearly 20% of the world’s data, India currently operates only 1.6 gigawatts of capacity, with an additional 1.7 gigawatts under development. This gap carries significant economic and strategic consequences.
The state has proposed the development of large-scale Data Centre 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.
Data centres 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 data centre 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 ₹35–40 crore per megawatt. When electronic equipment and GPUs are included, total investment may reach ₹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 data centre clusters is also envisaged. For initiating this process, a budget provision of ₹200 crore has been proposed, with the State Transformation Commission designated as the nodal agency.
In the era of Artificial Intelligence, 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 ₹100 crore in FY 2026–27. Taken together, the Data Centre 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.
