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The Gujarat government has taken another major step towards strengthening its digital infrastructure by signing a ₹25,000 crore Memorandum of Understanding (MoU) with L&T Vyoma. The agreement is for the development of a 250 MW AI-ready, green data centre at Dholera Special Investment Region (SIR).The agreement was signed at the India AI Impact Summit 2026 in New Delhi, in the presence of State Science and Technology Minister Arjun Modhwadia. This announcement places Dholera SIR firmly on India’s growing data centre map and highlights Gujarat’s focus on future-ready infrastructure, complementing ongoing projects such as the TATA Semiconductor plant in Dholera, Dholera Solar Park, Activation Area, Dholera International Airport, and the Ahmedabad-Dholera Expressway.
Data centres are a critical part of today’s digital economy. They support cloud services, digital payments, artificial intelligence, enterprise systems, and government platforms. With rising demand for data storage and processing, large-scale projects like this are becoming essential for India’s digital growth. This move also strengthens Dholera infrastructure and enhances connectivity with key transport links such as the Ahmedabad-Dholera Expressway and upcoming Dholera International Airport, positioning the region as a next-generation industrial hub.
Overview of the Gujarat-L&T Vyoma MoU for Dholera SIR
Under the MoU, L&T Vyoma will develop a 250 MW AI-ready data centre facility at Dholera SIR with an investment of ₹25,000 crore. The project is expected to be rolled out in phases, with the first phase operational by 2028, allowing infrastructure to scale based on demand. This aligns with other major Dholera investments and industrial initiatives, including the Dholera semiconductor plant and Dholera Solar Park, further boosting the region’s industrial ecosystem.
The project is designed to support AI training workloads, advanced analytics, and cloud computing, positioning Gujarat as a national hub for digital operations. The Department of Science and Technology, Government of Gujarat, will oversee feasibility studies covering land suitability, infrastructure readiness, and sustainability parameters, ensuring smooth execution and long-term viability. Beyond boosting India’s digital capacity, the data centre is expected to generate employment across construction, technical, and operational roles, while catalysing allied industries such as power management, cooling technologies, and logistics.
This agreement reflects Gujarat’s long-term planning approach, where large industrial and digital infrastructure projects are aligned with planned regions such as Dholera SIR. The state government has been actively promoting data centres as part of its industrial and digital development policies, ensuring Dholera connectivity and supporting overall Dholera infrastructure growth.
Why Dholera SIR Was Chosen for the Data Centre Project?
Dholera SIR is emerging as India’s preferred destination for hyperscale data centres due to its carefully planned infrastructure and strategic advantages:
- Greenfield Smart City - India’s first greenfield smart city with modern plug & play infrastructure, designed for long-term industrial and digital growth.
- Reliable Power Planning - Ensures uninterrupted electricity supply, essential for data centres and other technology-driven projects.
- Wide Road Networks - Efficient transport connectivity within the city and to major highways like the Ahmedabad Dholera Expressway, supporting smooth logistics.
- Proximity to Ports and International Airport - Easy access to global trade via Bhavnagar Sea Port and the upcoming Dholera International Airport, enhancing regional connectivity.
- Availability of Bulk Land Parcels - Large, well-planned land suitable for industrial, commercial, and Dholera semiconductor plant projects.
- Planned Industrial, Commercial & Utility Zones - Reduces execution challenges and supports scalable infrastructure for large projects.
- Future Expansion Potential - Designed to accommodate growth in Dholera infrastructure, including Dholera Solar Park and other technology investments.
This combination of strategic location, modern infrastructure, and scalability makes Dholera SIR the ideal hub for the 250 MW L&T Vyoma AI-ready data centre and other upcoming Dholera Smart City Project developments.
Role of L&T Vyoma in India’s Data Centre Growth
L&T Vyoma, the data centre arm of Larsen & Toubro, focuses on building and operating digital infrastructure across India. The company brings experience in engineering, construction, and technology-led infrastructure, which is crucial for complex facilities such as data centres. By investing in Dholera Smart City, L&T Vyoma is aligning its growth strategy with regions that are planned for long-term development and complement ongoing Dholera Smart City Project initiatives.
Impact on Dholera Smart City Development
The data centre project is expected to accelerate overall development within Dholera SIR. Large infrastructure projects often act as anchor developments, encouraging related industries such as power services, maintenance, logistics, and technology support services. While the project itself is technology-focused, its indirect impact includes job creation during construction, technical, and operational roles, as well as improved infrastructure utilisation. Over time, these developments contribute to the maturity of the Dholera Smart City Project and the region’s broader industrial ecosystem, including sectors like cooling, AI-enabled operations, and cloud computing services.
What This Means for Future Investments in Dholera SIR?
The signing of this MoU sends a strong signal to domestic and global investors about the seriousness of Dholera SIR as an infrastructure and industrial destination. Large commitments from established groups help build confidence and attract further Dholera investments across sectors. As more infrastructure becomes operational, Dholera SIR is expected to see steady growth driven by planned development rather than unstructured expansion. This aligns with Gujarat’s broader industrial strategy focused on sustainability and long-term economic value, and leverages its connectivity with the Ahmedabad Dholera Expressway and Dholera International Airport.
Conclusion
The ₹25,000 crore MoU between the Gujarat government and L&T Vyoma for a 250 MW AI-ready, green data centre at Dholera SIR marks an important milestone in the state’s digital infrastructure journey. It highlights the growing importance of planned smart cities, large-scale Dholera investments, and strategic projects such as the TATA Semiconductor plant in Dholera in supporting India’s digital economy. With strong infrastructure planning, strategic location, AI and green-ready facilities, and increasing investor interest, Dholera SIR continues to emerge as a key hub for next-generation infrastructure projects in Gujarat.
