CM DK Shivakumar and his cabinet colleagues pose for a photograph prior to cabinet meeting at Praja Soudha at Padil on Friday
Mangaluru: The Karnataka Sustainable Data Centre Policy 2026–2031 has been approved at the cabinet meeting held here on Friday under the chairmanship of CM DK Shivakumar , home minister Priyank Kharge said. The cabinet has approved a total budgetary framework of Rs 1,300.5 crore under the policy, which will be implemented from 2026 to 2031. The policy aims for Karnataka to account for 10–12% of India’s AI-ready data centre ecosystem by 2031, while targeting an increase in data centre capacity in the state to up to 1 GW, the minister said.
Priyank said key features of the policy include establishing a Centre of Excellence for Data Centres to promote research and innovation in the sector, developing sustainable data centre zones and data centre parks, and preparing a resource availability map to identify the availability of electricity, water and other infrastructure required for data centres at various locations across the state. The policy also aims to create opportunities for data centre investments in locations outside Bengaluru, including Mangaluru and Mysuru, the minister said. Kharge said the policy places emphasis on the use of renewable energy, energy efficiency, efficient water utilisation, advanced cooling systems, wastewater recycling and reduction of carbon emissions in data centre operations. Priyank said the govt intends to expand the data centre ecosystem beyond Bengaluru by leveraging the coastal region’s connectivity, potential future cable-landing infrastructure and other advantages.
Priority will be given to incentives linked to capital investment, edge data centres, power and digital infrastructure, the value chain, research and development, skill development and sustainability. Resource heat mapping will be used to identify suitable locations for data centre development based on the availability of land, electricity, water, connectivity and other essential infrastructure across different parts of the state. The objective is to promote the development of environmentally friendly and sustainable data centres, he added. Strengthening digital infrastructure required for the growth of artificial intelligence (AI), cloud computing, IoT, 5G, big data and other emerging technologies is one of the key objectives of the policy. The policy identifies Mangaluru as a location with significant potential to emerge as a key hub in Karnataka’s sustainable data centre expansion.