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Karnataka Approves Sustainable Data Centre Policy Targeting 1 GW
Karnataka has approved a five-year plan for building more data centres.
Data centres are large facilities that store and process digital information.
The plan will run from 2026 to 2031 and has a budget framework of ₹1,300.45 crore.
Karnataka wants to build up to 1 GW of data centre capacity.
It also wants to provide 10–12% of India’s AI-ready data centre capacity by 2031.
The plan encourages the use of renewable energy and better ways to manage electricity and water.
It aims to reduce pollution and use newer cooling technologies.
Mangaluru could become an important location for these facilities, in addition to Bengaluru.
The Karnataka Cabinet approved the Sustainable Data Centre Policy 2026–31 with a budget framework of ₹1,300.45 crore.
The policy targets 1 GW of cumulative data centre IT load and 10–12% of India’s AI-ready data centre capacity by 2031.
It promotes renewable energy, efficient electricity and water use, improved cooling, green technologies and lower carbon emissions.
Incentives include capital subsidies, wheeling-charge reimbursements, demand-centre incentives and research and development support.
Mangaluru has been identified as a potential data centre hub alongside Bengaluru, supported by coastal connectivity and possible cable-landing infrastructure.
- Who
- The Karnataka Cabinet, with announcements by Deputy Chief Minister G Parameshwara and Information Technology Minister Priyank Kharge.
- What
- Approval of the Karnataka Sustainable Data Centre Policy 2026–31.
- Where
- Karnataka, with Mangaluru highlighted as a potential expansion location beyond Bengaluru.
- When
- Approved on Friday; the policy will be implemented from 2026 through 2031.
- Why
- To develop sustainable data centre infrastructure, support technologies such as AI and cloud computing, improve connectivity, and reduce resource use and carbon emissions.
Key facts
- Policy period
- 2026–2031
- Budget framework
- ₹1,300.45 crore
- Capacity target
- Up to 1 GW of cumulative data centre IT load by 2031
- National target
- 10–12% of India’s AI-ready data centre capacity by 2031
- Sustainability focus
- Renewable energy, efficient electricity and water use, newer cooling technologies and lower carbon emissions
- Covered infrastructure
- Data centre parks, edge centres, cable landing stations and allied infrastructure
- Key expansion location
- Mangaluru, alongside the existing focus on Bengaluru
Quotes
Priyank Kharge
Karnataka’s Information Technology Minister
“Our objective is not simply to add more capacity, but to build the right capacity, in the right locations and with the right infrastructure. This means greater use of renewable energy, newer cooling technologies, better water management and stronger connectivity.”
indianexpress.com
Sources
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