Gujarat Government Partners with L&T Vyom for Major AI Data Centre Project
The Gujarat government has taken a significant step towards advancing its technological infrastructure by signing a memorandum of understanding (MoU) with L&T Vyom. This agreement, finalized on Friday, focuses on establishing a state-of-the-art, 250-megawatt green data centre campus in the Dholera Special Investment Region (SIR). The project represents a massive investment of Rs 25,000 crore, underscoring the state's commitment to fostering innovation and digital growth.
Strategic Agreement Signed at India AI Impact Summit 2026
The MoU was inked on the sidelines of the India AI Impact Summit 2026, highlighting its alignment with national priorities in artificial intelligence. As part of this deal, L&T Vyom will conduct a comprehensive feasibility study. This study will assess critical factors such as land suitability, infrastructure readiness, availability zones, and sustainability parameters to ensure the project's success and environmental compliance.
Project Timeline and Economic Impact
According to state government officials, the hyperscale data centre campus is expected to become operational by 2028. This timeline sets the stage for Gujarat to emerge as a key hub for AI infrastructure, cloud computing, and advanced analytics. The initiative is in direct support of the state's IT/ITeS Policy for the period 2022–27, which aims to drive technology-led economic development.
The project is projected to generate substantial employment opportunities. During the construction and commissioning phases, it will create numerous jobs, while also offering long-term operational roles and indirect employment through the associated ecosystem. This multifaceted job creation is anticipated to boost local economies and skill development in the region.
Attracting Global Firms and Building a Sustainable Digital Ecosystem
Officials have emphasized that the Dholera project is designed to attract global cloud and AI companies to Gujarat. By supporting emerging workloads like AI training and advanced analytics, it aims to build a robust and sustainable digital ecosystem. The Department of Science and Technology, Government of Gujarat, will play a pivotal role in facilitating the project, providing necessary infrastructure support through its various departments.
Government's Broader Investment in AI and Digital Initiatives
In a related move, the Gujarat government has allocated over Rs 850 crore in the current budget for AI and digital governance initiatives. This funding is part of a broader push to strengthen technology-led growth, ensuring that the state remains at the forefront of digital transformation and innovation in India.
