Can a data centre be set up in an SEZ?

Yes. Data centres have been set up in Indian SEZs, especially IT/ITeS SEZs. Check the current rules on domestic sales and approvals for your business model.

What types of SEZs exist?

Multi-product, sector-specific (such as IT/ITeS, pharma, engineering), and free trade and warehousing zones.

SEZ or industrial land — which is better for a data centre?

SEZs suit operators serving overseas customers. Industrial land is usually more flexible for domestic customers. We compare both for your project.

SEZ guide

SEZs in India

How Special Economic Zones work and when they make sense for a data centre.

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Quick answer: SEZs are zones created under India's SEZ Act, 2005, offering tax and duty benefits and simpler procedures for export-oriented units. IT/ITeS SEZs can host data centres, but the rules on serving domestic customers must be checked for each project.

How SEZs work

A developer gets an area notified as an SEZ, and units set up inside it with approval from the zone's Development Commissioner. Units trade with the domestic market under specific customs rules.

SEZs for data centres

Data centre operators serving overseas clients may benefit. Operators focused on Indian customers often prefer industrial land or IT parks. We compare both for you.

SEZ guides by state

Frequently asked questions

A Special Economic Zone is a designated area governed by the SEZ Act, 2005, where units get specific tax and duty benefits and simpler procedures, mainly to promote exports.

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