Uttar Pradesh is set to script India’s digital destiny with a visionary plan to establish the country’s first-ever ‘Data Corridor’, backed by an investment of nearly Rs 6 lakh crore and a target capacity of 6 gigawatts (GW) in the initial phase.

Awanish Awasthi, advisor to Chief Minister Yogi Adityanath and former chief secretary in UP government informed that this ambitious project was announced under the leadership of CM who aims to transform the state into a global hub for digital infrastructure, innovation and high-value employment, positioning Uttar Pradesh as the “Digital Growth Engine of New India.”

The Yogi Adityanath government has embarked on a strategic mission to achieve self-reliance in data infrastructure — a critical necessity in today’s digital economy. “The state is taking major steps toward becoming self-reliant in the field of data, which is becoming a vital necessity in human life,” a senior UP government official told Dainik Jagran, underscoring the centrality of data centers to everything from AI and cloud computing to e-governance and financial services.

UP unveils ambitious Rs 6 lakh crore vision for India’s 1st data corridor

Highlighting the initiative in a post on X, Chief Minister Yogi Adityanath’s Advisor, Awanish Awasthi, said the ambitious plan reflects the Uttar Pradesh government’s vision of transforming the state into a global digital infrastructure hub. Under the leadership of Chief Minister Yogi Adityanath, the state continues to pursue large-scale infrastructure and technology-driven initiatives to accelerate its journey towards a $1 trillion economy while emerging as the digital growth engine of New India.

According to a news report in The Dainik Jagran, the state selected the American consultancy firm Boston Consulting Group (BCG) to chart the roadmap for this transformative initiative. BCG will spend the next six months conducting comprehensive feasibility studies, including soil testing, water availability assessments, and power infrastructure audits, before finalising the master plan. The State Transformation Commission (STC), led by CEO Manoj Kumar Singh, has been entrusted with overseeing the development of the corridor.

ALSO READ

Massive investment and capacity targets

The financial scale of the project is staggering. According to government estimates, establishing a data center with a capacity of 1 GW requires an investment of approximately Rs 1 lakh crore. With the first phase targeting 6 GW of capacity, the total investment is projected to reach Rs 6 lakh crore. “After BCG completes the roadmap within six months, data clusters with a capacity of 6 gigawatts will be established in the first phase,” Singh confirmed, according to Dainik Jagran report.

Currently, India has a total data center capacity of just 1.7 GW, with an additional 1.8 GW under construction. In contrast, the United States leads globally with 50 GW, followed by China (25 GW) and Europe (14 GW). Uttar Pradesh, which currently hosts only 350 megawatts (0.35 GW) of data center capacity, is estimated to account for 20 percent of India’s total data demand—making it a strategic location for scaling up infrastructure, according to Dainik Jagran.

Rigorous site selection: Soil, water and power

Identifying suitable locations for hyperscale data centers is among the most complex challenges of the project. Unlike conventional models where private developers propose sites, the Uttar Pradesh government has decided to lead the site-selection process itself. “Finding a suitable location is the most difficult task,” an official admitted in a news report of Dainik Jagran, highlighting the need for 24-hour uninterrupted power and massive water supplies to cool servers and networking equipment. –

BCG’s survey will include geotechnical investigations to assess soil load-bearing capacity. Soil samples will be extracted from depths of 10 to 15 meters to ensure the ground can safely support the weight of massive server racks, cooling systems, and electrical infrastructure. The study will also evaluate seismic risks, groundwater depth, and long-term water availability — critical factors for ensuring the structural integrity and operational continuity of data centers designed to run for decades.

ALSO READ

Employment generation and economic impact in Uttar Pradesh

The Data Corridor is expected to catalyze significant economic activity beyond just infrastructure development. Projections suggest that the initiative could generate over 1.5 lakh high-skilled jobs in fields ranging from data engineering and cybersecurity to AI research and hardware manufacturing. A presentation slide from BCG, seen in government circles, outlines a vision for a “5 GW, 5-city AI corridor” anchored by hyperscale data centers, innovation cities, and digital hardware clusters.

Moreover, the project aligns with Uttar Pradesh’s broader ambition of becoming a trillion-dollar economy. By attracting global tech giants, hyperscalers, and startups, the state aims to create a self-sustaining digital ecosystem that complements its existing strengths in manufacturing, logistics, and human capital.

Policy framework, incentives and digital leap for New India

To support the Data Corridor, the Uttar Pradesh government has already rolled out a robust policy framework, including the Uttar Pradesh Data Center Policy 2026. Key incentives include a 25 percent land subsidy in Madhyanchal and Paschimanchal regions, a 7 percent capital subsidy (up to Rs 20 crore) on fixed capital investment, and the classification of data centers as “essential services” under the Essential Services Maintenance Act (ESMA) to ensure uninterrupted utilities.

Additionally, the government has committed to providing “infrastructure at the door” of data center parks — including 24×7 power, water, sewerage, and road connectivity — to minimize operational friction for investors. For projects exceeding Rs 200 crore, the State Cabinet will serve as the competent authority, fast-tracking approvals through an Empowered Committee.