Gujarat has inked a landmark memorandum of understanding (MoU) with L&T Vyom, valued at Rs 25,000 crore, to establish a cutting-edge 250MW green and AI-ready data centre campus in the Dholera Special Investment Region (SIR).

The agreement was formalised on Friday during the India AI Impact Summit 2026 in Ahmedabad, marking a significant step towards bolstering the state's digital infrastructure.

Under the terms of the MoU, L&T Vyom will conduct a comprehensive feasibility study. This will assess critical aspects such as land suitability, infrastructure preparedness, availability zones, and sustainability metrics to ensure the project's viability.

The hyperscale data centre is slated to become operational by 2028, aligning with Gujarat's ambitious timeline for technology-led economic expansion.

This initiative positions Gujarat as an emerging hub for AI infrastructure, cloud computing, and advanced analytics. It dovetails seamlessly with the state's IT/ITeS Policy for 2022–27, which prioritises such high-tech developments.

The project promises substantial employment generation. During the construction and commissioning phases, it will create direct jobs, while long-term operations will sustain roles in maintenance, security, and technical support.

Indirect employment opportunities will also proliferate through the project's ecosystem, including suppliers, logistics firms, and ancillary services, fostering broader economic ripple effects in the region.

Officials anticipate that the Dholera campus will draw global cloud providers and AI enterprises to Gujarat. It is designed to handle demanding workloads like AI model training and sophisticated data analytics.

Sustainability remains a cornerstone of the venture, with the facility touted as 'green'. This emphasises renewable energy integration and eco-friendly practices, appealing to environmentally conscious tech giants.

The Gujarat Department of Science and Technology will play a pivotal role in facilitating the project. It will coordinate across government departments to provide essential infrastructure support, streamlining approvals and utilities.

This MoU underscores Gujarat's proactive stance in digital governance. The state government has allocated over ₹850 crore in the current budget specifically for AI and related initiatives, signalling a robust commitment to technology-driven growth.

Dholera SIR, part of the Delhi-Mumbai Industrial Corridor, benefits from strategic location advantages. Its proximity to major ports and airports enhances connectivity, making it ideal for data centre operations requiring low-latency networks.

The investment reflects growing private-sector confidence in Gujarat's business environment. L&T Vyom, a Larsen & Toubro subsidiary, brings proven expertise in data centre development, ensuring high standards of reliability and scalability.

By 2028, the campus could position Gujarat at the forefront of India's data centre boom. Analysts project the national market to surpass 2 GW capacity by decade's end, with hyperscale facilities like this driving the surge.

Challenges such as power reliability and water scarcity in arid regions like Dholera will be addressed through innovative solutions. The feasibility study will prioritise these, potentially incorporating advanced cooling technologies and solar power.

This development aligns with India's national digital ambitions, including the India AI Mission. It could catalyse further investments, transforming Dholera into a Silicon Valley-like enclave for AI innovation.

Stakeholders hail the MoU as a win-win. For L&T Vyom, it expands its footprint in sustainable data infrastructure; for Gujarat, it accelerates its vision of becoming a global tech powerhouse.

TNN