The Uttar Pradesh cabinet approved the Data Center Policy 2026 on Monday, marking a decisive step to position the Indian state as a premier hub for artificial intelligence infrastructure.
Chaired by Chief Minister Yogi Adityanath, the approval formalizes a regulatory framework designed to attract significant capital expenditure from global technology firms and domestic players alike.
The policy places a strong emphasis on AI-ready capacity, including support for Graphics Processing Unit (GPU) clusters, alongside rigorous sustainability standards.
By aligning incentives with the technical requirements of next-generation computing, the state aims to reduce friction for hyperscalers seeking to expand their footprint in India.
This focus on specialized hardware infrastructure distinguishes the policy from earlier, more generic data center initiatives.
Market participants view the move as a positive signal for the broader Indian tech ecosystem.