Archive · 21 Sep 2026
Karnataka Unveils Sustainable Data Centre Policy for Greener Growth
Karnataka has approved a new plan for building data centres from 2026 to 2031.
Data centres are large facilities that store and process digital information.
The state wants them to use electricity and water more carefully.
It also wants them to use more renewable energy and newer cooling systems.
The plan has a budget framework of ₹1,300.45 crore.
Karnataka hopes to reach 1 GW of data centre capacity by 2031.
It wants 10–12% of India’s AI-ready data centre capacity to be located in the state.
The policy also encourages development outside Bengaluru.
Officials say this should help digital businesses grow while reducing environmental impacts.
Karnataka approved its Sustainable Data Centre Policy 2026–2031, a five-year framework for attracting data centre investment.
The policy targets a cumulative 1 GW of data centre IT load by 2031 and 10–12% of India’s AI-ready capacity.
Implementation is backed by a revised budget framework of ₹1,300.45 crore.
The plan emphasizes renewable energy, efficient power use, advanced cooling, water management and carbon-emission mitigation.
The government aims to expand data centre infrastructure beyond Bengaluru while supporting connectivity and regional digital corridors.
- Who
- The Government of Karnataka, led on the policy announcement by IT and E-Governance Minister Priyank Kharge.
- What
- Karnataka approved its Sustainable Data Centre Policy 2026–2031.
- When
- The policy covers the five-year period from 2026 to 2031.
- Where
- Karnataka, with a focus on expanding infrastructure beyond Bengaluru.
- Why
- To attract data centre investment and meet rising demand from artificial intelligence, cloud computing, IoT, 5G, Global Capability Centres and FinTech while improving sustainability.
- Policy period
- 2026–2031
- Implementation budget framework
- ₹1,300.45 crore
- Data centre IT-load target
- 1 GW cumulative capacity by 2031
- India capacity ambition
- 10–12% of India’s AI-ready data centre capacity
- Sustainability priorities
- Renewable energy, energy efficiency, advanced cooling, water management and carbon-emission mitigation
- Expansion focus
- Development beyond Bengaluru and support for regional digital corridors
- Covered infrastructure
- Data centre units, parks, operators, edge data centres, cable landing stations and allied infrastructure