Rajasthan Data Center Policy-2025
The estimated capacity of the Indian data center market in the year 2024 was 2 thousand MW, which is expected to increase to more than 4 thousand MW by the year 2029.
In view of this increasing utility of data centers, the state government has implemented Rajasthan Data Center Policy-2025 to encourage the establishment of data centers in the private sector in Rajasthan.
This data center policy was announced in the state budget 2024-25.
The goal of Rajasthan Data Center Policy-2025 is to make Rajasthan a major hub of the data center sector by developing a world-class data center ecosystem in the state.
This policy will make the efficiency, security and reliability of the activities of the data centers to be set up in the state effective.
Under this policy, several provisions have been made to encourage the data center sector, including annual asset creation incentive of Rs 10-20 crore for 10 years, 25% additional sunrise incentive to the first 3 data centers investing more than Rs 100 crore, 5% interest subsidy for 5 years, 100 percent exemption in banking, transmission and wheeling charges, flexible payment facility related to land, exemption in stamp duty, land conversion and electricity charges, and exemption from external development charges up to Rs 10 crore.
The new policy also pays special attention to environmental protection and increasing the efficiency of personnel. Under this, 50% reimbursement of the amount spent to improve the efficiency of data center employees, 50% reimbursement up to Rs 12.5 crore as green solution incentive, 50% assistance up to Rs 1 crore on GI tag, patent, copyright and trademark registration, exemption in building bylaws and provisions for continuous power supply are included. This policy includes new initiatives like recognizing data centers as essential services and making special provisions in building bylaws.
After the implementation of this policy, an investment of about Rs 20 thousand crore is expected in the state in the next five years.
Also, new employment opportunities will also be created for the youth in the field of information technology.
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