Uttar Pradesh plans 1,000-acre data centre and IT hub in Bundelkhand

Summary

• Proposed 1,000-acre technology hub: Uttar Pradesh is developing plans for a dedicated data centre and information technology cluster in Bundelkhand. Officials reported that 810 acres of the targeted 1,000 acres had been assembled by October 2026.
• 56,662-acre BIDA development: The proposed hub will form part of the Bundelkhand Industrial Development Authority (BIDA), a planned industrial and urban development project spanning 33 villages in Jhansi district.
• More than 80% of first-phase land acquired: The state has acquired 28,874 acres against a first-phase target of 35,298 acres. A 2,320-acre activation area has been identified, including 1,000 acres proposed for initial development.
• Focus on industrial diversification: The project aims to attract investment in digital infrastructure, IT, manufacturing and logistics as Uttar Pradesh pursues its $1 trillion state economy ambition.

LUCKNOW, October 16, 2026 — The Uttar Pradesh government is advancing plans for a dedicated 1,000-acre data centre and information technology hub in Bundelkhand, seeking to expand industrial investment beyond the state’s established business centres.

The proposed technology cluster will form part of the Bundelkhand Industrial Development Authority (BIDA), a planned industrial and urban development project covering 33 villages in Jhansi district. The wider development is intended to accommodate industrial facilities, commercial activity and supporting infrastructure.

According to reports published in October 2026, the state had assembled 810 acres of the targeted 1,000 acres for the proposed data centre and IT hub. The project is intended to support Uttar Pradesh’s broader industrial development strategy and its ambition to build a $1 trillion state economy.

Chief Secretary S.P. Goyal has directed officials to accelerate land acquisition and infrastructure development associated with major industrial projects, including BIDA.

The proposed hub could attract data centre operators, cloud infrastructure providers and IT businesses to the region. However, the reported land acquisition represents progress towards site development; it does not confirm that data centre facilities are operational or that specific hyperscale operators have committed to the project.

BIDA land acquisition and development plans

BIDA’s planned development area covers 56,662 acres across 33 villages in Jhansi district. The acquisition programme is structured around two phases.

Phase 1: The acquisition target is 35,298 acres, of which 28,874 acres had reportedly been acquired by October 2026.

Phase 2: A further 21,364 acres are planned for acquisition as the wider development progresses.

The first-phase acquisition figure represents approximately 81.8% of its target. The broader BIDA project is designed to accommodate several industrial and urban uses rather than serving exclusively as a data centre development.

Within the wider project area, authorities have identified a 2,320-acre activation zone, with 1,000 acres proposed for initial development. Project planning includes a detailed project report and draft sector zoning arrangements, subject to the relevant government approvals and statutory processes.

The next stage will involve translating land acquisition and planning into serviced industrial plots. Roads, electricity connections, water supply, drainage and other utilities will be important in determining when businesses can establish facilities at the site.

Why Bundelkhand could attract data centre investment

The proposed data centre and IT hub would extend Uttar Pradesh’s digital infrastructure ambitions into a region with significant land availability and a developing industrial base.

Large data centres need space for server buildings, electrical substations, backup power systems, cooling equipment and network infrastructure. Planned industrial townships can potentially provide room for these facilities alongside roads and other supporting services.

Bundelkhand may offer developers opportunities to plan larger sites than those available in some densely developed urban areas. However, land availability alone does not guarantee investment. Developers will also assess land prices, power reliability, fibre connectivity, water resources, infrastructure delivery schedules and the commercial terms offered by the government.

Uttar Pradesh’s Data Centre Policy 2026 provides a policy framework and incentives for eligible projects. The specific benefits available to a developer would depend on the policy’s conditions and the project’s eligibility.

The proposed BIDA hub could therefore become another location for digital infrastructure investment in Uttar Pradesh, provided that essential utilities and network connections are developed on commercially viable terms.

Renewable energy potential and electricity requirements

Reliable electricity will be one of the most important requirements for the proposed data centre cluster. Data centres operate around the clock and require power for servers, cooling systems, networking equipment and backup infrastructure.

Bundelkhand has significant planned solar power development. Regional projects and transmission proposals could create opportunities for data centre operators to procure renewable electricity, depending on which projects become operational and how power is connected to the grid.

However, planned solar capacity should not be confused with commissioned generation or electricity already allocated to the proposed BIDA hub. The availability of renewable power will depend on project completion, transmission capacity, grid connections and suitable power purchase arrangements.

Large data centre developers will also need to assess backup power, power quality and the resilience of local electricity infrastructure. These factors are particularly important for facilities supporting cloud services and AI workloads, where service interruptions can be costly.

The final energy supply arrangements for the proposed BIDA technology cluster have not been established in the reporting reviewed. Dedicated captive solar supply should therefore not be presented as a confirmed feature of the project.

Expressway access and digital connectivity

The Bundelkhand Expressway provides an important road connection for the region and could support the movement of construction materials, electrical equipment and other supplies needed for industrial development.

The expressway is approximately 296 kilometres long and connects the Bundelkhand region with the wider road network. Improved road access may also make the proposed industrial area more accessible to workers, contractors and service providers.

For data centre operators, road transport is only one part of the infrastructure requirement. High-capacity fibre networks, diverse telecommunications routes, reliable electricity and dependable water services are equally important.

The available information does not establish that dedicated utility ducts along the expressway already provide direct, low-latency fibre connectivity between Jhansi and major technology markets such as Kanpur, Lucknow and Delhi. The availability, route diversity and capacity of fibre infrastructure will need to be confirmed with network providers and project authorities.

The pace of digital infrastructure deployment will therefore depend on coordination between industrial planners, electricity utilities, water agencies and telecommunications operators.

Industrial diversification and environmental challenges

BIDA is planned as a mixed industrial and urban development area, with potential uses spanning manufacturing, automotive and electric vehicle components, defence-related industries, logistics, information technology and other commercial activities.

If investment materialises, the wider project could support economic diversification in Jhansi district and create demand for construction, utilities, logistics and technical services. The scale of these benefits will depend on the number of businesses that establish operations and the speed at which infrastructure becomes available.

Data centre development also presents environmental and engineering challenges. Bundelkhand experiences hot summer conditions and has faced water stress in parts of the region. High ambient temperatures can increase cooling requirements, while limited water availability can constrain the choice of cooling systems.

Developers may consider closed-loop cooling, direct-to-chip liquid cooling or other energy-efficient technologies, depending on the design of the facility and its computing equipment. These systems can help manage cooling performance and, in suitable configurations, reduce water consumption.

Nevertheless, the cooling system must be assessed alongside electricity demand, local climate conditions and the availability of water. The reporting reviewed does not establish a binding requirement for specific cooling technologies or dedicated industrial water pipelines for the proposed hub.

Environmental approvals and detailed utility planning will be important before large-scale data centre construction can proceed.

Why this matters

• Expansion beyond established technology centres: The proposed hub could broaden Uttar Pradesh’s data centre footprint beyond established locations such as Noida and Greater Noida.
• Large-scale industrial development: BIDA’s land acquisition programme is intended to create space for technology, manufacturing, logistics and other businesses.
• Potential renewable energy opportunities: Planned solar development in Bundelkhand could offer options for renewable electricity procurement, subject to generation, grid access and commercial arrangements.
• Infrastructure delivery will determine viability: Reliable electricity, high-capacity fibre, water management and cooling infrastructure will be critical to attracting data centre operators.
• Regional economic diversification: The project could support investment and employment in Bundelkhand if planned facilities progress to construction and commercial operation.

Frequently asked questions

Q1: What is the proposed Bundelkhand data centre and IT hub?

It is a planned 1,000-acre data centre and information technology cluster within the wider BIDA development area in Jhansi district, Uttar Pradesh. The proposed hub is intended to attract digital infrastructure and IT investment.

Q2: How much land has been assembled for the proposed hub?

Officials reportedly said that 810 acres of the targeted 1,000 acres had been assembled by October 2026. This is a land-acquisition milestone, not confirmation that the facilities have been built or are operational.

Q3: What is BIDA?

The Bundelkhand Industrial Development Authority is overseeing plans for a major industrial and urban development area covering 33 villages in Jhansi district. Its planned development area spans 56,662 acres.

Q4: How much land has been acquired for BIDA’s first phase?

By October 2026, 28,874 acres had reportedly been acquired against a first-phase target of 35,298 acres, representing approximately 81.8% of the target.

Q5: Could solar power supply the proposed data centre hub?

Potentially, but a dedicated supply has not been confirmed. The region has planned solar generation and transmission infrastructure, and the availability of power will depend on commissioned capacity, grid connections and commercial power purchase agreements.

Q6: What infrastructure will the hub need?

The proposed development will require reliable electricity, high-capacity fibre connectivity, roads, water supply, cooling systems and other utilities. The final requirements and delivery schedules will depend on detailed plans and the needs of future operators.