Uttar Pradesh on the path to becoming the New Capital of the Data Economy

Data Center Policy under the CM Yogi govt strengthening digital infrastructure

Target to develop Large Data Center Clusters with 5 Gigawatts capacity in the state by 2030

Expansion of opportunities for e-governance, cloud services and tech startups

Lucknow, February 2026 : Uttar Pradesh is rapidly emerging as a major hub of the country’s growing data economy. With the data center policy of the CM Yogi government and recent announcements, the scope of digital infrastructure in the state is continuously expanding. During the Budget Session of the State Assembly in February 2026, the government announced the development of large-scale data center clusters in the state and the formation of a State Data Center Authority. The objective is to provide an institutional framework for the development of the data center industry and further accelerate the investment process.

The CM Yogi government has set a target to develop 4 to 5 large data center clusters with a total capacity of 5 gigawatts in the state by 2030. This goal is considered an important step toward establishing Uttar Pradesh as a major hub for data storage and cloud services in the country.

Amid rapidly increasing digital usage, rising demand for cloud services, and policies promoting data localization, the importance of the data center industry continues to grow.

According to the state government’s plan, eight data center parks will be developed with an investment of approximately ₹30,000 crore, with a total capacity of about 900 megawatts. Work on several of these projects has already progressed.

So far, the government has issued Letters of Comfort to eight projects, including six data center parks and two standalone data center units.

Through these projects, investments worth ₹21,342 crore and a capacity of 644 megawatts have already been secured in the state. This progress indicates that the data center sector in Uttar Pradesh is rapidly gaining momentum and major technology companies are showing interest in investing here.

IT expert Pradeep Yadav says that the expansion of the data center industry will not only strengthen digital infrastructure but will also create new employment opportunities in sectors such as IT, cloud services, networking and other technology-based services.

At the same time, it will also build a strong foundation for startups and digital services in the state.

It is also important to note that before 2017, there was not a single data center established in Uttar Pradesh. After the Yogi government came to power, the situation has changed rapidly over the past few years.

With policy-based incentives, improved connectivity and an investment-friendly environment, the state has been making steady progress in the data center sector, while several projects are currently under construction or in the proposal stage.

The government believes that the development of data center clusters and the formation of the State Data Center Authority will bring greater transparency and speed to the investment process. It will also give the state a new identity in the field of digital infrastructure and position Uttar Pradesh as a key center of India’s data economy in the coming years.