Uttar Pradesh is positioning itself as a major digital infrastructure destination, with plans to attract investments worth ₹49 trillion in the data centre sector and expand its operational capacity to nearly 2 GW, according to a recent industry assessment.
The state government has identified data centres, artificial intelligence infrastructure, cloud computing facilities and digital services as key pillars of its long-term economic growth strategy. The proposed expansion is expected to significantly enhance Uttar Pradesh’s role in India’s rapidly growing digital economy, particularly as demand for AI computing, cloud storage and high-performance data processing continues to rise.
Noida and Greater Noida have emerged as the focal points of the state’s data centre ecosystem, attracting investments from domestic and international operators. The region already hosts several large-scale facilities and is witnessing the development of new campuses by leading technology and infrastructure companies.
Industry estimates indicate that Uttar Pradesh could account for a substantial share of India’s future data centre capacity additions. The state’s strategic location, improving power infrastructure, extensive fibre connectivity and proximity to the National Capital Region have contributed to growing investor interest.
The planned expansion to approximately 2 GW of capacity reflects increasing demand generated by artificial intelligence applications, digital services, cloud adoption, fintech platforms, e-commerce, government digitalisation initiatives and enterprise data storage requirements. AI workloads, in particular, are driving the need for high-density computing infrastructure and advanced data centre facilities.
To support this growth, the state has introduced policy incentives aimed at attracting investments in digital infrastructure. These include provisions related to land availability, power supply, approvals and infrastructure support for data centre developers.
The sector is also expected to generate significant employment opportunities across construction, engineering, operations, maintenance, cybersecurity, cloud services and information technology. In addition, the development of large data centre clusters is likely to stimulate demand for supporting infrastructure such as transmission networks, renewable energy projects, cooling systems and telecommunications facilities.
As India accelerates its adoption of artificial intelligence and digital technologies, Uttar Pradesh is seeking to leverage its infrastructure ecosystem and policy framework to establish itself as one of the country’s leading hubs for data centres and AI-driven digital infrastructure.
