Inside UP’s 1,000-acre data centre hub plan in Bundelkhand: Location, land and investment incentives explained

Uttar Pradesh plans a 1,000-acre data centre and IT hub near Jhansi in Bundelkhand, with 810 acres assembled so far. Here’s what the plan covers, where the hub will come up, the infrastructure required and the incentives available to attract investors.

Uttar Pradesh is planning a dedicated 1,000-acre data centre and information technology hub in Bundelkhand, near Jhansi, as part of a much larger industrial city being developed across 33 villages. The proposed technology cluster is intended to attract data centre operators and IT businesses to a region that the state wants to develop as a new industrial destination.

The project is still in the land assembly and planning stage. Of the 1,000 acres targeted for the hub, 810 acres had been assembled as of 16 October, according to officials cited by Business Standard.

Here is what is known about the proposed project, its location and the infrastructure planned around it.

Where will the 1,000-acre data centre hub come up?

The hub is proposed within the Bundelkhand Industrial Development Authority (BIDA) development in Jhansi district, Uttar Pradesh. BIDA covers a planned 56,662 acres across 33 villages and is intended to accommodate industrial, commercial and infrastructure projects. The data centre and IT cluster would occupy a dedicated portion of this larger development.

The scale of the wider project is significant. The state has approved the acquisition of 35,298 acres in the first phase and 21,364 acres in the second phase. By 16 October, 28,874 acres had been acquired against the first-phase target, according to the report.

The proposed technology hub should not be confused with the entire BIDA township. The 1,000-acre allocation is for the data centre and IT cluster, while the wider development is expected to accommodate several industrial sectors.

What will the data centre hub include?

The proposed cluster is intended to support data centre and IT businesses, but its detailed layout and the facilities to be developed within the 1,000 acres have not been established by the official material reviewed.

For data centre operators, the important infrastructure requirements will include reliable electricity supply, high-capacity telecommunications connectivity, cooling systems, water management and road access. These are requirements for a viable data centre development, not confirmation that every facility has already been sanctioned for this site.

The wider BIDA development is also expected to accommodate automotive, defence, fast-moving consumer goods, healthcare, logistics and other industries. Its master plan and sectoral planning will determine how different uses are organised across the township.

How far along is the project?

The reported acquisition of 810 acres marks progress towards the proposed hub's 1,000-acre land target. However, land assembly is only one stage of development.

BIDA has identified a 2,320-acre activation area, with 1,000 acres proposed for development. A detailed project report has been submitted to the government, while the draft sector plan is to be finalised after approval of the BIDA Master Plan 2045, according to the report. The available information does not establish that the 1,000-acre data centre hub is identical to the 1,000-acre proposed development area within the activation zone.

A government tender published on 19 October also invites bids for consultancy covering sectoral planning, detailed project reports and assistance with the bidding process for infrastructure works under BIDA Master Plan 2045. This indicates that important planning and infrastructure work remains in progress.

What happens next?

The next milestones are completion of the targeted land assembly, finalisation of the relevant plans, development of supporting infrastructure and announcements on private participation.

For the project to move beyond a land and planning proposal, prospective operators will need clarity on power availability, connectivity, water and cooling arrangements, project timelines and the terms on which land will be allotted.

About the Author

Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.