Archive · 19 Sep 2026
Karnataka Approves Sustainable Data Centre Policy Targeting 1 GW
Karnataka has approved a plan to build more data centres from 2026 to 2031.
Data centres are large facilities that store and process digital information.
The plan has a budget framework of ₹1,300.45 crore.
Karnataka wants to create up to 1 GW of data centre capacity.
It also wants to supply 10–12% of India’s AI-ready data centre capacity by 2031.
The policy encourages renewable energy and careful use of electricity and water.
It also supports newer cooling systems and efforts to reduce carbon emissions.
Bengaluru will not be the only focus, because Mangaluru and other regional areas may also receive data centre investments.
The government will provide incentives for infrastructure, research, training and business development.
The Karnataka Cabinet approved the Sustainable Data Centre Policy 2026–2031 at a meeting in Mangaluru.
The five-year policy has a budget framework of ₹1,300.45 crore and targets 1 GW of cumulative data centre IT load by 2031.
Karnataka aims to provide 10–12% of India’s AI-ready data centre capacity by 2031.
The policy promotes renewable energy, efficient electricity and water use, advanced cooling, carbon-emission mitigation and stronger connectivity.
Mangaluru is identified as a potential data centre hub alongside Bengaluru, with incentives covering investment, infrastructure, research, skilling and green energy.
- Who
- The Karnataka Cabinet, chaired by Chief Minister DK Shivakumar, approved the policy; Information Technology Minister Priyank Kharge and Deputy Chief Minister G Parameshwara announced details.
- What
- Approval of the Karnataka Sustainable Data Centre Policy 2026–2031.
- When
- Approved on Friday; the policy will be implemented from 2026 through 2031. One report was published on September 18, 2026.
- Where
- Karnataka, with the Cabinet meeting held in Mangaluru and expansion planned beyond Bengaluru.
- Why
- To attract data centre investment, support AI and other emerging technologies, expand digital infrastructure and make operations more sustainable.
- Policy period
- 2026–2031
- Budget framework
- ₹1,300.45 crore
- Data centre target
- 1 GW of cumulative data centre IT load by 2031
- National capacity target
- 10–12% of India’s AI-ready data centre capacity by 2031
- Covered infrastructure
- Data centre units, parks, edge centres, cable landing stations and allied infrastructure
- Sustainability measures
- Renewable energy, energy efficiency, advanced cooling, water management and carbon-emission mitigation
- Implementation agencies
- The Department of Electronics, Information Technology, Biotechnology and Science & Technology will anchor implementation; Karnataka Innovation and Technology Services will manage registration and policy interface, while Karnataka Udyoga Mitra will provide single-window clearances.
