Rajasthan Data Centre Policy to attract investments worth Rs 20,000 crore in 5 years: CM

This initiative is poised to create thousands of new employment opportunities in the field of information technology, strengthening both the digital infrastructure and economic prospects of the state, said Chief Minister's Office officials.

In today's digital age, information technology has become an essential part of everyday life, playing a transformative role in sectors like education, healthcare, business, banking, and entertainment.

E-governance and online services have also proven instrumental in delivering transparent and accountable governance.

At the core of these digital services lie data centres, which enable the seamless and secure functioning of cloud computing platforms, co-location services, and content delivery networks.

Data centres are critical for safeguarding business data, ensuring data accessibility, and offering reliable recovery solutions.

Over recent years, India has seen a remarkable expansion in data centre capacity, establishing itself as a fast-growing market.

In 2024, the estimated capacity of India's data centre market stood at 2,000 MW, with projections indicating a rise to more than 4,000 MW by 2029.

In response to the rising importance of data infrastructure, the Rajasthan government has introduced the Rajasthan Data Centre Policy-2025.

Announced as part of the State Budget 2024-25, the policy seeks to foster private sector participation in developing a robust data centre ecosystem within the state.

The policy aims to transform Rajasthan into a prominent hub for data centres by ensuring world-class infrastructure and adhering to global standards of performance, security, and data management.

It outlines a comprehensive framework that not only enhances operational efficiency but also boosts investor confidence by offering various incentives.

To make the environment attractive for investment, the policy includes financial assistance and exemptions across several parameters.

It encourages the development of large-scale data centres by facilitating easier access to land, offering substantial interest subsidies, and waiving off key charges related to electricity, transmission, and external development.

Special support is extended to the first few major investors, further encouraging early adoption.

The policy also emphasises environmental sustainability and human resource development.

It provides support for green initiatives, such as reimbursements for eco-friendly upgrades and incentives for adopting intellectual property rights.

Additionally, provisions have been made to improve the skills and efficiency of personnel working in data centres.

With this strategic policy in place, Rajasthan aims to position itself as a preferred destination for data centre development in India.

While current data centre hubs are concentrated in metro cities like Mumbai, Chennai, Delhi, Bengaluru, Pune, Hyderabad, and Kolkata, Rajasthan offers significant advantages such as ample land availability, renewable energy potential, and a business-friendly regulatory environment. These strengths, combined with the government's proactive approach, make the state well-suited for establishing new greenfield data centres, officials said.