The Uttar Pradesh Data Center Policy 2026 was approved by the Uttar Pradesh Cabinet on Monday. The meeting was presided over by Chief Minister Yogi Adityanath. The policy aims to attract investments above ₹2 lakh crore.
It seeks to increase data center capacity by 2 GW. The objective is to establish Uttar Pradesh as a hub for green and AI-ready data centers.
The Uttar Pradesh Data Center Policy 2021 is superseded by the new policy. On January 27, 2026, that policy came to an end. On November 7, 2022, it was modified once.
The initiative would improve the state’s digital infrastructure, according to the government. It claimed that the policy would encourage innovation. According to the report, the policy will help establish Uttar Pradesh as a technological destination that can compete on a global scale.
Additionally, the administration connected the program to its goal of a $1 trillion state economy. Additional incentives for projects in Purvanchal and Bundelkhand have been announced.
GPUs, Green Power And Tax Breaks
Sunil Sharma, Minister of IT and Electronics, outlined the main clauses. “The new policy places special emphasis on GPU-based infrastructure, energy efficiency, and sustainable development,” he stated. Furthermore, further incentives have been suggested for the Purvanchal and Bundelkhand regions. Incentives for Tier/Rating-3 and 4 Data Centers, AI Compute Booster incentives, and Green and Sustainable Operations incentives are among the measures included in the policy.
There are currently seven active projects.
Regarding the previous 2021 policy, Sharma provided an update. He stated, “Under the Uttar Pradesh Data Centre Policy-2021 (First Amendment-2022), out of 6 data centre parks and 2 data centre units with a capacity of less than 40 Megawatts involving an investment of approximately ₹21,343 crore, 7 projects have already become operational.”
The government anticipates that the new strategy will build on these advancements and further develop the state’s digital infrastructure.
Startup Policy 2026
Further financial incentives are brought in by the policy, he continued. These include quality certification and patent reimbursement of up to ₹2 crore. Matching awards of up to ₹5 crore are among them. A 4% interest subsidy on term loans up to ₹2 crore is one of these. Reimbursement of EPF and ESI contributions is one of these. According to the government, these steps will help firms grow more quickly and alleviate early-stage financial difficulties.
AI, Robotics And Space Tech Startups Get A Bigger Cheque
Deep-tech startups will receive additional incentives from the government. This includes firms in cutting-edge industries including robotics, quantum technology, artificial intelligence, and space technology. These firms might receive up to ₹20 lakh in prototype help. They may receive up to ₹30 lakh in startup capital. Up to ₹100 crore in patient capital support is available to them. They are eligible for up to 40% in funding for research and development.
Additionally, the policy increases support for incubators. Incubator capital awards have increased from ₹1 crore to ₹1.25 crore. Grants of up to ₹1.50 crore are available for incubators in Purvanchal and Bundelkhand. Grants for operational expenses have grown from ₹30 lakh to ₹40 lakh annually. High-performing incubators and firms that acquire capital through them will receive additional incentives, according to the government.
Twenty new Centers of Excellence will be established by the state. These will concentrate on new technologies such as robots, agritech, healthtech, machine learning, artificial intelligence, and space technology. These centers now receive ₹12 crore in funding instead of ₹10 crore. Additionally, the government will establish a Deep-Tech U-Hub at the state level. This hub will provide modern laboratory facilities, industry collaboration, mentorship, funding access, and incubation support for companies.
17,000 Startups And Counting
“With about 17,000 startups currently registered in the state, Uttar Pradesh has made significant progress in the startup sector,” stated Sharma. A Startup Mission Directorate will be established in Uttar Pradesh to provide more institutional support for startup growth and to further build the ecosystem and enhance coordination among companies, incubators, and Centers of Excellence.”
The Societies Registration Act will be used to establish the Uttar Pradesh Startup Mission. As the nodal agency, it will operate under the Department of IT & Electronics. It will facilitate coordination between startups, business, academic institutions, and investors. Additionally, it will keep an eye on and assess startup projects.
₹14,988.50 Crore For Panchayats
A financial proposal for Panchayati Raj Institutions for 2026–2027 was separately approved by the Cabinet. The State Finance Commission has allotted ₹14,988.50 crore. All three tiers of panchayats are covered by this. The money will be used for upkeep, administrative costs, and elected officials’ honoraria. Additionally, the money will be used to conduct programs like the Swachh Bharat Mission (Gramin).
