Data Center Policy Overview
Sector Overview :

Uttar Pradesh is setting a global benchmark in the Data Center (DC) industry with its ambitious Data Center Policy 2021. This policy aims to establish the state as an attractive destination for investors and technology firms looking to tap into the rapidly growing DC market. The policy encompasses compelling financial and non-financial incentives designed to spur technological advancements, economic growth, and job creation.

Sector Overview
The Uttar Pradesh Data Center Policy 2021 promises to bring a multitude of economic benefits to the state, with projections indicating a substantial increase in revenue, enhanced employment rates due to direct and indirect job creations, and a significant boost to the local economy through ancillary industries. The policy also positions Uttar Pradesh as a prime destination for national and international investments in the DC sector, paving the way for superior digital infrastructure and technological development within the state.
  • Establish UP as preferred investment destination for Data Centre industry.
  • Develop 250 MW Data Centre Industry in UP.
  • Attract investments worth Rs 20,000 Crores.
  • Establishing at least 3 State of art Private Data Centre Parks in UP.
Investment and Fiscal Incentives
Investors and technology firms are encouraged to leverage this unique opportunity to be part of Uttar Pradesh's technological renaissance. For detailed insights and to explore investment opportunities, reach out directly to the Project Management Unit under the supervision of the Nodal Agency.
Land Subsidy :   50% subsidy in Bundelkhand regions, capped at 7.5% of the total project cost or INR 75 Crore, whichever is lower.
Interest Subsidy :   Up to 60% reimbursement of annual interest for 7 years with a cap of INR 10 Crore per year, accumulating to a total ceiling of INR 50 Crore per park.
Stamp Duty :  Full exemption on the first transaction and 50% on the second for land purchase/lease.
Electricity Supply :  Reimbursement for one of the dual grid lines; 50% off wheeling and transmission charges with additional exemptions for interstate and intrastate sale.
Capital Subsidy  to units @7% upto maximum Rs 20 Crores on FCI (exclude land & building) to be paid in 10years.
Land subsidy :  50% Land subsidy on prevailing sector rates shall be provided on purchase/lease of land from State Agencies in Bundelkhand and Purvanchal regions.
Stamp duty :   100% exemption of stamp duty on first transaction (Authority/ landowner to DC Unit) and 50% exemption on second transaction (DC Park to DC Units) shall be available for purchase/lease of land to DC units.
Electricity Duty :  100% exemption on electricity duty for a period of 10 years post commencement of commercial operation shall be provided.
MSMEs/Startups UP based Data Center MSMEs/Startups   providing innovative solutions in cloud business shall be eligible to avail incentives as per the UP MSME Policy or UP Startup Policy.
Center of Excellence :  Up to 50% of the total CoE project cost (subject to a maximum of 10 Cr.) will be borne by Government of UP.
Dual power grid power supply  to first 3 DC parks established in the State. Energy Deptt to bear the cost of second grid. For units it is available on demand at applicable charges.
Transmission & Wheeling charges exemption for 25years @50% on intrastate sale of power; @100% for intrastate transmission system & for 5years import of energy from outside UP to both parks & units.
Sub-leasing :  DC parks shall be allowed to sublease the land/ buildings to DC units/ SPV without any sublease or transfer charges.
Floor Area Ratio :  DC Parks and Units shall be allowed for 3.0 + 1.0 (Purchasable) FAR. Basement parking, storage and space used for DG sets installation will not be considered as part of FAR.
Non-Fiscal Incentives
Non-Fiscal Incentives:
Essential Service Classification :  DC Industry declared under Essential Services, ensuring business continuity and support.
Water Supply :   Guaranteed 24X7 water supply to DC units by Industrial Area Development Authorities, with requirements for establishing water treatment plants by DC parks.
Building Norms Relaxations :  Includes sub-leasing without charges, extended FAR, no restrictions on ceiling height, and allowances for various installations optimizing operational efficiency.