Gujarat has signed a major memorandum of understanding (MoU) worth ₹25,000 crore with L&T Vyom to build a large 250MW green and AI-ready data centre campus in the Dholera Special Investment Region (SIR). The agreement marks one of the biggest investments in digital infrastructure in the state.

The MoU was signed on Friday during the India AI Impact Summit 2026 held in Ahmedabad. The event highlighted Gujarat’s growing focus on artificial intelligence and digital growth. The signing of this agreement is seen as a major step toward strengthening the state’s technology ecosystem.

As part of the agreement, L&T Vyom will first conduct a detailed feasibility study. This study will examine important factors such as land suitability, readiness of infrastructure, availability zones, and sustainability measures. These checks will ensure that the project is practical, efficient, and environmentally responsible before construction begins.

The planned data centre will be a hyperscale facility and is expected to be operational by 2028. This timeline supports Gujarat’s larger goal of expanding its economy through technology-led growth. Once completed, the campus will be capable of handling advanced digital tasks, including artificial intelligence model training and large-scale data analytics.

The project also aligns with Gujarat’s IT/ITeS Policy for 2022–27. This policy focuses on encouraging high-tech investments in sectors like AI, cloud computing, and digital services. By bringing in a 250MW AI-ready data centre, the state aims to position itself as a leading destination for next-generation digital infrastructure.

Employment generation is expected to be one of the major benefits of this investment. During the construction and commissioning phases, the project will create direct jobs in engineering, construction, and related activities. Once operations begin, it will provide long-term employment in maintenance, security, facility management, and technical support roles.

In addition to direct jobs, the project will also generate indirect employment. Suppliers, logistics companies, contractors, and other service providers are likely to benefit from the ecosystem created around the data centre. This is expected to bring wider economic growth to the region.

Officials believe that the Dholera campus will attract global cloud service providers and AI-focused companies to Gujarat. The facility is being designed to manage high-demand digital workloads. With its AI-ready structure, it will support large computing requirements and advanced data processing needs.

Sustainability is a central feature of the project. The proposed facility has been described as “green,” which means it will focus on renewable energy use and eco-friendly operations. This approach is important for attracting global technology companies that prioritise environmental responsibility. Renewable energy integration and energy-efficient systems are expected to be key components of the campus.

The Gujarat Department of Science and Technology will play an important role in moving the project forward. The department will coordinate with different government bodies to ensure smooth implementation. This includes support for infrastructure, approvals, utilities, and other essential requirements. By streamlining processes, the state aims to complete the project within the planned timeline.

The MoU also reflects Gujarat’s commitment to digital governance and technological advancement. In the current state budget, more than ₹850 crore has been allocated specifically for AI and related initiatives. This financial support shows the government’s clear focus on building a strong AI ecosystem.

Dholera SIR, where the campus will be developed, is part of the Delhi-Mumbai Industrial Corridor. The location offers strong connectivity advantages. It is close to major ports and airports, which helps ensure reliable data transfer and low-latency network connectivity. These factors make it a suitable location for a large-scale data centre that depends on speed and stability.

The investment also highlights growing confidence from the private sector in Gujarat’s business environment. L&T Vyom, a subsidiary of Larsen & Toubro, brings experience in developing and managing data centre projects. Its expertise is expected to ensure that the facility meets global standards of reliability, scalability, and performance.

Industry analysts note that India’s data centre market is expanding rapidly. By the end of this decade, the country’s total data centre capacity is projected to cross 2 gigawatts. Large hyperscale projects like the one planned in Dholera are expected to play a key role in driving this growth. Once operational by 2028, the campus could help place Gujarat at the centre of India’s data infrastructure expansion.

However, certain challenges will need to be addressed. Dholera is located in an arid region, where issues such as power reliability and water availability may arise. The feasibility study will carefully examine these factors. Possible solutions include the use of advanced cooling systems and greater reliance on solar energy to ensure efficient and sustainable operations.

The development also supports India’s broader digital goals, including the India AI Mission. By creating a strong AI infrastructure base, the project could attract more technology investments in the future. Over time, Dholera could evolve into a major technology and innovation hub, often compared to a Silicon Valley-style ecosystem.

Stakeholders have described the MoU as beneficial for both sides. For L&T Vyom, it expands its presence in sustainable data infrastructure. For Gujarat, it accelerates the vision of becoming a global technology powerhouse through digital growth and AI-led development.