New Haryana Data Centre Policy 2026: CAPEX, OPEX and Fast-Track Approvals for Digital Infrastructure

2 hours ago

6 min read

India's appetite for data is growing faster than its infrastructure. Cloud adoption, artificial intelligence and the push towards data localisation have turned data centres into critical national infrastructure, in the same league as power, roads and telecom. Recognising this shift, the Government of Haryana has notified the New Haryana Data Centre Policy 2026, a five-year framework that aims to attract a cumulative investment of INR 10,000 crore into the State's data centre sector.

The policy builds on the 2022 Data Centre Policy and pairs a meaningful fiscal package (capital and operating cost reimbursement, employment subsidies and park-developer support) with a set of regulatory concessions that address the issues data centre operators care about most: land, power, water, connectivity and approval timelines. Below, we set out the key features and what investors should keep in mind.

Why Haryana is positioning itself for data centres

The policy notes that India's operational data centre capacity is currently around 1.53 GW and is expected to grow to roughly 2,000–2,100 MW by FY2027. Haryana's case rests on its location within the National Capital Region, the corporate demand base in Gurugram and Faridabad, a diversified power mix with growing renewable capacity, extensive fibre networks and access to a large NCR talent pool. The stated vision is to make Haryana "a globally competitive hub for data centres" that also strengthens data sovereignty.

Who is eligible?

The policy classifies data centres by contracted power capacity:

Category	Contracted power capacity
Hyperscale Data Centre	Above 10 MW
Core Data Centre	Above 1 MW and up to 10 MW
Edge Data Centre	300 kW up to 1 MW

Key eligibility conditions include:

• Minimum size: Data Centre Units must have at least 1 MW of contracted power dedicated to data centre operations, and Data Centre Parks (a planned cluster of two or more units with common infrastructure) must have a cumulative capacity of at least 20 MW.

• Edge data centres are not supported under this policy; their incentives are to be covered under the Haryana Progressive MSME and Exports Policy, 2026.

• Captive data centres are excluded, regardless of size.

• Timing: The unit or park must commence commercial operations (date of first sale invoice) within the five-year policy period, and the application must be filed before commercial operations begin. Units that started operations between 7 July 2022 and the notification of this policy remain under the 2022 policy.

• Expansion/diversification by existing units at the same location qualifies once during the policy period, provided the additional Fixed Capital Investment (FCI) is at least 50% of current FCI, or at least 25% subject to a minimum of INR 125 crore, or exceeds the Mega/Ultra Mega threshold for that location. A separate GST registration and books of account are generally required for the expansion.

Fiscal incentives for Data Centre Units

1. CAPEX support

Category	CAPEX reimbursement
Hyperscale	20% of eligible capital expenditure, capped at INR 25 crore per unit
Core	10% of eligible capital expenditure, capped at INR 1 crore per MW

The support is paid in ten annual instalments, starting from the later of commencement of operations or achievement of the committed investment. Eligible Capital Expenditure (ECE) is drawn widely and includes building and infrastructure, power back-up, machinery, hardware and software, new captive renewable energy plants of 100 kW or more, ETP/waste management plants, DSIR/CSIR-recognised R&D facilities, stamp duty on sale/lease deeds, External Development Charges, cooling technologies and the cost of green building certifications (LEED, IGBC, GRIHA, BEE).

Expenditure counts if incurred during the policy period and before commercial operations, plus one year thereafter for MSME/Large units and three years for Mega/Ultra Mega units. Investment made up to one year before notification is also recognised where commercial operations begin within the policy period. Transferred machinery, working capital, goodwill, pre-operative expenses, capitalised interest and technology/know-how payments are excluded.

2. OPEX support (five years)

Category	OPEX reimbursement
Hyperscale	50% of eligible OPEX, capped at INR 8 crore per annum
Core	30% of eligible OPEX, capped at INR 4 crore per annum

Eligible OPEX means amounts actually paid towards Net SGST, wheeling and transmission charges for importing power from outside the State, electricity duty, and the cost of obtaining globally recognised data centre certifications. "Net SGST" is SGST paid through the cash ledger after first exhausting available ITC (including IGST credit), so input credit planning has a direct bearing on the size of this incentive.

3. Employment Generation Subsidy (ten years)

The subsidy rewards units that employ Haryana residents (verified only through the Parivar Pehchan Patra):

• Where Haryana locals are 15% or more of the workforce, the subsidy is 100% + 20% × (local proportion − 15%) of the average gross monthly salary per eligible local employee, capped at INR 1 lakh per employee per year.

• For women, SC, Divyang and ex-servicemen/Agniveer local employees, the base rises to 120%, capped at INR 1.2 lakh, and this category is supported even where the overall local proportion is below 15%.

• A floor of INR 48,000 per employee per annum applies where the average gross monthly salary is below INR 48,000.

• Employees must have been on payroll (or on contract with ESI/PF numbers) for at least one year. For expansion units, only incremental headcount counts.

4. Employment booster through HKRN

For employees recruited through the Haryana Kaushal Rozgar Nigam (HKRN), the State will reimburse 100% of both the employer's and the employee's EPF contribution for five years, each capped at 12% of basic plus DA and retaining allowance, and at INR 25,000 per employee per year.

Mega and Ultra Mega projects can additionally negotiate customised incentive packages with the Haryana Enterprise Promotion Board (HEPB) on a case-to-case basis, over and above the standard package.

Incentives for Data Centre Park developers

Developers of eligible parks (20 MW+) can claim:

• CAPEX support of 20% of eligible capital expenditure, capped at INR 15 crore, covering common infrastructure such as internal roads, power distribution and back-up, water, sewerage and treatment plants, utility tunnels, communication infrastructure, captive renewable energy (1 MW+), DSIR-recognised R&D, skilling centres, stamp duty and EDC. It is released in four tranches linked to milestones: 50% on licence and completion of development, and 20%, 15% and 15% as 25%, 50% and 75% of the earmarked area becomes operational.

• Interest subsidy of 5% on term loans for five years, capped at INR 5 crore per annum.

There is no double benefit: park-level support cannot overlap with unit-level support for units inside the park.

Non-fiscal support and regulatory reforms

The non-fiscal package is arguably as significant as the cash incentives:

• Building code relaxations: FAR of 500%, ground coverage of 60% and no height restriction for data centre buildings under the Haryana Building Code.

• Status recognitions: Data centres are already declared an Infrastructure Industry (November 2023) and an essential service under the Haryana Essential Services Maintenance Act (July 2023), and the State proposes to declare them an Energy Intensive Industry.

• Utilities: the State will endeavour to provide dual-grid power, 24×7 water supply and redundant last-mile connectivity, with time-bound online Right of Way permissions and a proposed "Dial Before You Dig" framework.

• Time-bound approvals through HEPB's Single Roof Clearance System: pre-commencement approvals (building plan, temporary power, fire scheme, Consent to Establish) within 10 working days, and commencement approvals (permanent power, Occupation Certificate, Consent to Operate) within 15 working days.

• Property tax at industrial rates, HSIIDC plot reservations in IMTs and industrial estates, and permission for data centres in Transport and Communication Zones.

• Public procurement preference: HARTRON will empanel operational data centres, and State departments will give first preference to these and to MeitY-empanelled facilities in Haryana.

• Interest on delayed incentives where the delay is attributable to the Department.

Points investors should keep in mind

1. Apply early. The application must reach the Department before commercial operations begin. Missing this step can mean losing eligibility entirely.

2. No stacking across State policies. Fiscal incentives under this policy cannot be combined with other Haryana policies for the same project, except the Haryana Progressive MSME and Exports Policy for heads not covered here.

3. 100% FCI ceiling. Central and State incentives together cannot exceed 100% of FCI for the project.

4. Documentation drives disbursement. Since CAPEX support runs over ten years and OPEX support over five, clear capitalisation records, ECE workings, SGST cash-ledger reconciliations and employee records (PPP verification, ESI/PF) are essential.

5. Compliance is a pre-condition. Units and parks must comply with the Haryana Building Code, fire safety norms and TCP norms.