Pranav Hotkar
Gandhinagar, India - June 14, 2026 - Gujarat has moved to strengthen its position in India’s emerging AI infrastructure market after signing an agreement for a 250 MW hyperscale data center campus in Dholera Special Investment Region (SIR), a project expected to attract nearly INR 25,000 crore (~USD 2.9 billion) in investment.
The state government signed the memorandum of understanding with L&T Vyoma during the India AI Impact Summit 2026, outlining plans for a large-scale AI-ready facility designed to support cloud computing, high-performance computing (HPC), and next-generation artificial intelligence workloads.
The proposed campus will be powered through green energy integration and is scheduled for completion by 2028, according to officials. The development reflects growing demand for energy-intensive AI infrastructure across India as enterprises, hyperscalers, and AI developers seek larger compute environments capable of supporting GPU-heavy deployments.
Officials said the project aligns with Gujarat’s IT and IT-enabled Services (IT/ITeS) Policy 2022-27, which aims to attract digital infrastructure investments into the state. The data center is also expected to support broader industrial growth inside Dholera SIR, one of India’s largest planned smart industrial regions under the Delhi-Mumbai Industrial Corridor initiative.
L&T Vyoma will initially conduct feasibility studies covering infrastructure readiness, sustainability planning, land assessment, and connectivity requirements before construction activities begin.
The announcement comes as Indian states increasingly compete to attract hyperscale and AI infrastructure investments amid rising global demand for compute capacity. AI model training and inference systems are driving significantly higher power densities compared with traditional enterprise workloads, pushing developers toward locations with strong energy availability and scalable infrastructure.
Dholera has already emerged as a major industrial and clean-energy hub, supported by projects including the planned Dholera Solar Park and the under-construction international airport. Industry observers believe the combination of renewable power access, planned urban infrastructure, and industrial zoning could make the region attractive for future large-scale digital infrastructure developments.
Beyond computing capacity, the project is also expected to generate employment opportunities across engineering, construction, facility operations, and digital services. Officials said the initiative could help accelerate Gujarat’s ambitions to become a central node in India’s expanding AI and cloud infrastructure ecosystem.
