250 MW Green AI Data Centre at Dholera SIR to be studied by L&T Vyoma under Gujarat government MoU. Learn key facts, exam relevance, investment details, Digital India connection, MCQs and takeaways for UPSC, PCS, SSC and banking exams.
L&T Vyoma to Study 250 MW Green AI Data Centre at Dholera SIR: A Major Boost to India’s Digital Infrastructure
The Government of Gujarat has taken a significant step toward strengthening India’s digital and artificial intelligence (AI) ecosystem by signing a Memorandum of Understanding (MoU) with Larsen & Toubro’s (L&T) data centre arm, Vyoma to explore the establishment of a 250 MW green AI-ready data centre at Dholera Special Investment Region (SIR). This landmark agreement was finalized at the India AI Impact Summit 2026 held in New Delhi, demonstrating India’s intent to build robust infrastructure to support AI, cloud computing and cutting-edge digital services.
MoU Signing and Project Overview
The MoU for the proposed data centre project was signed between the Department of Science and Technology, Government of Gujarat and L&T Vyoma, in the presence of Arjun Modhwadia, Gujarat’s Minister of Science and Technology. Under the agreement, L&T Vyoma has committed to conducting a comprehensive feasibility study that will assess several key parameters — including land suitability, infrastructure readiness, availability zones, connectivity, and sustainability metrics. Meanwhile, the state government will extend full support through policy facilitation and infrastructure development to ensure seamless execution.
Green and Sustainable AI Infrastructure
This 250 megawatt (MW) AI-ready data centre is envisaged as a green facility, meaning its design and operations will prioritise renewable energy sources and sustainability. The move is aligned with India’s broader goals of promoting environmentally friendly infrastructure while catering to the fast-growing demand for high-performance computing, data storage, cloud service platforms, and AI applications across sectors like finance, health care, manufacturing, and e-commerce.
Strategic Choice of Dholera Special Investment Region
Dholera SIR is one of India’s largest planned industrial and smart city projects with world-class connectivity, modern infrastructure, and multi-modal transport networks. This makes it an ideal location for a large-scale data centre campus. The project supports the Gujarat IT/ITeS Policy (2022–27) and is expected to reinforce the state’s position as a top destination for advanced AI and digital investments in India.
Economic and Employment Potential
With an estimated investment of ₹25,000 crore, this project is likely to be operational by 2028. Besides direct employment in construction, operations, and technical management, the centre is expected to catalyse job creation in ancillary sectors like support services, AI startups, cloud technology firms and training institutions. The project also aims to attract global tech companies and innovators, resulting in wider economic growth for the region.
Long-Term Digital Vision for India
This MoU underscores India’s commitment to developing state-of-the-art digital infrastructure that can support AI-driven transformation across sectors. The strategic collaboration between the government and private enterprise reflects a shared vision to position India as a global hub for digital innovation, sustainability, and cutting-edge technology development.
Why This News is Important for Government Exam Aspirants
Transforming Digital and AI Infrastructure
The announcement of a 250 MW green AI-ready data centre project in Dholera SIR represents a significant milestone in India’s digital infrastructure journey. It demonstrates the country’s commitment to building sustainable technology ecosystems that can support the growing demand for AI, cloud computing, data storage, and analytics solutions. Government exams — especially those in civil services, defence, banking, railways and teaching — frequently include questions related to digital initiatives, technology infrastructure and national growth strategies. Understanding this project helps candidates link key policy actions with broader economic goals.
Policy Alignment and Strategic Growth
This MoU aligns with the Gujarat IT/ITeS Policy (2022–27) and national ambitions to become a leader in digital innovation. Competitive exams often test aspirants’ knowledge of state and national policies that aim for economic development through technology. The project also reflects principles of sustainable development, a recurring theme in general studies and current affairs sections of exams like UPSC, PCS and SSC.
Employment and Economic Impact
The economic benefits of this project — including direct and indirect job creation, attraction of global technology companies, and expansion of AI-driven industries — are key points for economic development topics in exams. Candidates preparing for banking and economics questions might also encounter information on investments, infrastructure financing, and long-term employment patterns.
Historical Context: Digital Infrastructure and AI in India
India’s journey toward becoming a global digital powerhouse began with initiatives like Digital India, launched in 2015 to improve online services and connectivity across the country. Over the past decade, India has rapidly expanded its digital footprint across sectors — including e-governance, fintech, cloud computing, and AI. Govt policies have increasingly prioritised technology adoption, innovation, and capacity building in AI. Several states, including Gujarat, have introduced specific policies to attract investments in IT, ITeS, data centres and AI research. The signing of this MoU continues this trend and underscores India’s vision to promote sustainable, futuristic digital infrastructure that supports innovation, economic growth and global competitiveness.
Key Takeaways from “L&T Vyoma to Study 250 MW Green AI Data Centre at Dholera SIR”
| S.No. | Key Takeaway |
|---|---|
| 1. | The Government of Gujarat signed an MoU with L&T Vyoma to study a 250 MW green AI-ready data centre project. |
| 2. | The MoU was signed at the India AI Impact Summit 2026 with the state Department of Science & Technology. |
| 3. | The project involves an estimated investment of ₹25,000 crore and is expected to be operational by 2028. |
| 4. | The feasibility study will assess land, infrastructure readiness, sustainability and availability zones. |
| 5. | The centre is expected to strengthen Gujarat’s position as a digital and AI infrastructure hub, creating economic and employment opportunities. |
Frequently Asked Questions (FAQs)
1. What is the proposed project announced by L&T Vyoma in Gujarat?
L&T Vyoma has signed an MoU with the Government of Gujarat to conduct a feasibility study for establishing a 250 MW green AI-ready data centre at Dholera Special Investment Region (SIR).
2. Where will the proposed 250 MW data centre be located?
The data centre is proposed to be set up at Dholera Special Investment Region in Gujarat, one of India’s largest planned smart industrial cities.
3. Which company is leading this initiative?
The project feasibility study will be conducted by L&T Vyoma, the data centre division of Larsen & Toubro.
4. What does a “green AI-ready data centre” mean?
A green AI-ready data centre refers to a facility designed to support artificial intelligence workloads while minimizing environmental impact through renewable energy use, energy-efficient cooling systems, and sustainable infrastructure practices.
5. What is the estimated investment in this project?
The estimated investment is around ₹25,000 crore, making it one of the significant infrastructure investments in India’s digital sector.
6. Under which state policy does this project align?
The project aligns with the Gujarat IT/ITeS Policy (2022–27), which aims to promote IT infrastructure, digital investments, and employment generation in the state.
7. Why is Dholera SIR strategically important?
Dholera SIR is part of India’s smart city and industrial corridor development plans, offering advanced infrastructure, connectivity, and planned urban development.
8. Which national initiative supports such digital infrastructure growth?
The project supports the broader objectives of Digital India, launched in 2015 to transform India into a digitally empowered society and knowledge economy.
9. How is this news relevant for UPSC and State PCS exams?
It is important for topics such as infrastructure development, AI ecosystem growth, public-private partnerships (PPP), green energy, smart cities, and economic development.
10. What sectors will benefit from this AI-ready data centre?
Sectors such as banking, defence, healthcare, fintech, e-governance, and research institutions will benefit from improved AI computing and data storage capabilities.
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