Dy CM Sanghavi contrasts Gujarat’s data centre ambitions with decades of failed semiconductor initiatives
Gandhinagar, July 9 (IANS) Deputy Chief Minister Harsh Sanghavi on Thursday drew parallels between India’s unsuccessful attempts to establish a semiconductor industry in previous decades and Gujarat’s latest push to build a data centre ecosystem, saying the state intends to avoid repeating past mistakes through the newly launched ‘Viksit Gujarat – Data Centre Policy 2026-29’.
Speaking after Chief Minister Bhupendra Patel launched the policy in Gandhinagar, Sanghavi said India had witnessed earlier semiconductor initiatives fail despite major policy announcements, but was now emerging as a global manufacturing destination.
“We have also seen a time in this country when the world was moving ahead in the semiconductor mission. In 1976, a decision regarding the semiconductor mission was taken in a Cabinet meeting in the presence of the Prime Minister. The decision eventually led to the semiconductor mission failing by 1990,” he said.
He said another attempt was made between 2006 and 2009, when plans were announced for a semiconductor park in Hyderabad.
“Yet again, the dreams of the semiconductor mission faded away. In 2009, the land meant for that semiconductor park was converted into real estate. The country has witnessed such a period as well,” he said.
Contrasting that experience with recent developments, Sanghavi said the semiconductor mission had gained momentum after being revived in 2021 and that Gujarat had become one of its principal beneficiaries.
“Since 2025, whether it is several semiconductor fabs in the country or the inauguration of OSAT facilities, within just four months, more than three semiconductor OSAT facilities have been inaugurated on the soil of Gujarat,” he said.
He credited the state’s implementation capabilities for attracting investments in emerging technologies.
“Under the leadership of Prime Minister Narendra Modi and the guidance of the Chief Minister, the Gujarat government team has demonstrated that when Gujarat and the country decide on a direction, they also possess the complete capability to implement it on the ground,” he emphasised.
Sanghavi said Gujarat has now become the first state in India to formally launch a dedicated data centre policy. “For quite some time, many states in the country have spoken about data centres, but Gujarat is the first state to officially launch a Data Centre Policy,” he said.
He added that the policy had been introduced with an initial planned capacity of 7.5 GW, while investor interest had already exceeded that figure.
“The policy is being launched with a capacity of 7.5 GW… Across the whole of Gujarat, the policy being launched today has already generated demand for nearly double that capacity. Leading companies from India and across the world have already sent request letters to the state government seeking to establish their data centres at different locations in Gujarat,” he claimed.
The Viksit Gujarat Data Centre Policy 2026-29 offers fiscal and non-fiscal incentives for hyperscale data centres and AI infrastructure, including capital subsidies, power tariff support, tax reimbursements and provisions encouraging renewable energy and sustainable water use.
The state government expects the policy to support investment in digital infrastructure as demand for AI computing and cloud services continues to grow.
–IANS
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