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Rajasthan's Chief Minister Shri Bhajanlal Sharma has unveiled the Rajasthan Data Centre Policy 2025, aiming to attract INR 20,000 crore in investments over the next five years. The policy offers extensive incentives, including annual subsidies up to INR 20 crore, a 5% interest subsidy, and exemptions on land charges and electricity fees. Early investors receive an extra 25% 'sunrise incentive.' The policy also supports green tech, skill development, and IP protection. With assured power supply and new regulatory reforms, Rajasthan seeks to emerge as a data centre hub beyond India's metro cities, leveraging its land availability and renewable energy potential.
Rajasthan Chief Minister Shri Bhajanlal Sharma has announced that the newly introduced Rajasthan Data Centre Policy 2025 is expected to bring in investments of around INR 20,000 crore over the next five years. The policy, announced in the state's Budget 2024-25, is designed to encourage the private sector to set up data centres in the state and aims to position Rajasthan as a key player in India's expanding digital infrastructure sector. Advertisement
Under the policy, the government has introduced a wide range of incentives for companies setting up data centres. These include an annual asset creation incentive of INR 10-20 crore for 10 years, a 5 per cent interest subsidy for five years, and complete exemption from banking, transmission, and wheeling charges. Additionally, companies will benefit from flexible land payment options, exemptions on stamp duty, land conversion charges, and up to INR 10 crore exemption in external development fees. For early movers, the first three data centres investing more than INR 100 crore will receive an additional 25 per cent 'sunrise incentive.'
The policy also focuses on sustainability and talent development. Data centre developers will be eligible for 50 per cent reimbursement on costs incurred to train employees, and up to INR 12.5 crore in support for adopting green technologies. The policy includes 50 per cent assistance up to INR 1 crore for GI tag, patent, copyright, and trademark registrations. New provisions in building bylaws have been introduced, and data centres will now be recognised as essential services. The policy promises uninterrupted power supply-an essential factor for data centre operations.
Currently, most data centres in India are concentrated in metro cities like Mumbai, Delhi, Chennai, Bengaluru, and Hyderabad. Rajasthan, with its ample land, renewable energy resources, and investor-friendly policies, sees a chance to build a greenfield data centre ecosystem. According to CM Sharma, the new policy will not only bring in large-scale investment but also create employment opportunities for youth in IT and allied sectors across the state.
By offering a combination of financial support, infrastructure readiness, and regulatory ease, Rajasthan hopes to become an attractive destination for data centre investments and take a significant step towards becoming part of India's digital infrastructure network.
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