The Yogi government has announced an ambitious plan to build India’s first Data Corridor in Uttar Pradesh with an estimated investment of ₹6 lakh crore. The project aims to create 6 gigawatts (GW) of data centre capacity in its first phase and position the state as a major global destination for digital infrastructure, artificial intelligence (AI), cloud computing and high-value technology jobs.
Uttar Pradesh is scripting India's digital future!
— Awanish K Awasthi (@AwasthiAwanishK) July 31, 2026
With a visionary plan to develop India's first Data Corridor backed by an investment of nearly ₹6 lakh crore and 6 GW data cluster capacity, Uttar Pradesh is set to become a global hub for digital infrastructure, innovation,… pic.twitter.com/zXiMkRocSg
The proposal was shared by Awanish Awasthi, advisor to Chief Minister Yogi Adityanath and former Uttar Pradesh chief secretary. He said the initiative reflects the Yogi government’s vision of turning Uttar Pradesh into the “Digital Growth Engine of New India” while supporting its target of becoming a $1 trillion economy.
UP aims to become self-reliant in data infrastructure
The Yogi government believes data infrastructure has become as important as physical infrastructure in today’s digital world. Data centres support services such as AI, cloud computing, financial technology, digital payments and e-governance. Officials say strengthening this sector will help Uttar Pradesh become self-reliant in meeting the country’s growing data needs.
A senior government official told Dainik Jagran that the state is taking major steps to build a strong data ecosystem because data has become an essential part of daily life.
To prepare the project, the Uttar Pradesh government has appointed the Boston Consulting Group (BCG) to develop a detailed roadmap. Over the next six months, the consultancy will study different aspects of the project, including land suitability, soil quality, water availability and power infrastructure before submitting the final master plan.
The State Transformation Commission (STC), headed by CEO Manoj Kumar Singh, will supervise the entire planning process.
Government estimates suggest that setting up 1 GW of data centre capacity requires an investment of around ₹1 lakh crore. Since the first phase targets 6 GW, the expected investment stands at nearly ₹6 lakh crore. According to Manoj Kumar Singh, once BCG completes its study, data centre clusters with a combined capacity of 6 GW will be developed during the first phase.
Why Uttar Pradesh is focusing on data centres
India currently has around 1.7 GW of operational data centre capacity, while another 1.8 GW is under construction. In comparison, the United States has about 50 GW, China has 25 GW, and Europe has nearly 14 GW.
Uttar Pradesh presently has only 350 megawatts (0.35 GW) of data centre capacity. However, the state is estimated to account for nearly 20% of India’s total data demand, making it an important location for future expansion.
Instead of waiting for private companies to suggest sites, the Yogi government has decided to identify suitable locations on its own. Finding the right place is considered one of the biggest challenges because large data centres require round-the-clock electricity and a huge supply of water to cool servers and networking equipment.
As part of the survey, BCG will carry out geotechnical investigations, including soil testing at depths of 10 to 15 metres, to check whether the land can support heavy server infrastructure. The study will also examine groundwater availability, seismic risks and long-term water resources to ensure the facilities can operate safely for many years.
Project expected to create over 1.5 lakh jobs
Apart from strengthening digital infrastructure, the Data Corridor is expected to generate significant employment. Government estimates suggest the project could create more than 1.5 lakh high-skilled jobs in areas such as data engineering, cybersecurity, AI research and hardware manufacturing.
A BCG presentation shared within government circles also proposes a “5 GW, 5-city AI corridor”, featuring hyperscale data centres, innovation cities and digital hardware clusters to support the state’s technology ecosystem.
To attract investment, the Yogi government has introduced the Uttar Pradesh Data Centre Policy 2026. Under the policy, investors will receive a 25% land subsidy in the Madhyanchal and Paschimanchal regions. The government has also announced a 7% capital subsidy, up to ₹20 crore, on fixed capital investment.
Data centres have been classified as essential services under the Essential Services Maintenance Act (ESMA) to ensure uninterrupted access to electricity, water and other essential utilities.
The government has also promised to provide complete infrastructure, including 24×7 power supply, water, sewerage facilities and road connectivity, up to the entrance of data centre parks. Projects involving investments of more than ₹200 crore will be cleared by the State Cabinet through an Empowered Committee, helping speed up the approval process.
