Lucknow, July 06: The Uttar Pradesh Data Center Policy-2026 was approved in the Cabinet meeting chaired by Chief Minister Yogi Adityanath on Monday. The earlier policy had expired on January 27, 2026, following which the government has introduced the new Uttar Pradesh Data Center Policy-2026.
The objective of the policy is to develop Uttar Pradesh as a Green, AI-ready, and globally competitive Data Center hub. Under the policy, a target has been set to develop an additional capacity of 2 Gigawatts and attract investment of more than Rs 2 lakh crore.
Focus on AI and sustainability
IT and Electronics Minister Sunil Sharma stated, "The new policy places special emphasis on GPU-based infrastructure, energy efficiency, and sustainable development. In addition, extra incentives have been proposed for the Bundelkhand and Purvanchal regions. The policy includes provisions such as incentives for Tier/Rating-3 and 4 Data Centers, AI Compute Booster incentives, and Green and Sustainable Operations incentives."
Following the approval of the Data Center Policy-2026, a world-class Data Center ecosystem will be developed in the state. The establishment of information technology and other IT-based units around Data Center units will increase employment opportunities. The proposed policy is expected to generate long-term direct employment for 7,500 people and short-term direct employment for approximately 50,000 people during the construction period.
Previous policy outcomes
The Minister noted, "The Yogi government had implemented the Uttar Pradesh Data Center Policy-2021 in January 2021, which was subsequently amended on November 7, 2022. Under the Uttar Pradesh Data Center Policy-2021 (First Amendment-2022), out of 6 Data Center Parks and 2 Data Center units with a capacity of less than 40 Megawatts involving an investment of approximately Rs 21,343 crore, 7 projects have already become operational."
Financial proposal for Panchayats
The Cabinet also approved a proposal relating to the financial requirements of Panchayati Raj Institutions. Accordingly, a provision of Rs 14,988.50 crore has been made under the State Finance Commission for Panchayats at all three tiers during the financial year 2026-27. Ten percent of this amount, approximately Rs 1,498 crore, will be spent on administrative, operational, and maintenance expenses. Out of this amount, Rs 495.89 crore will be spent on honorarium and meeting allowances for Panchayat representatives.
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It is noteworthy that directions have been issued to withhold 1.05 percent of the funds received by Panchayats at all three tiers from the State Finance Commission at the Directorate level for expenditure on the Swachh Bharat Mission (Gramin) and on honorarium for Finance Commission personnel, as well as technical, administrative, civil, and other essential requirements.
Accordingly, approximately Rs 157.38 crore is estimated to be spent under the Swachh Bharat Mission (Gramin) and the Finance Cell constituted under the Finance Commission on the honorarium of personnel working at the state, division, district, and development block levels, as well as on technical, administrative, and other essential requirements. This amounts to approximately 1.05 percent of the current State Finance Commission instalment of Rs 14,988.50 crore and is in accordance with the Government Order dated December 12, 2024. This amount will be utilised in accordance with the rules and as required under the directions of the Director, Panchayati Raj.
