Karnataka Puts Sustainability at the Core of 1 GW Data Centre Expansion by 2031
Karnataka has approved the Sustainable Data Centre Policy 2026–2031 linking the state’s next phase of digital infrastructure expansion with renewable energy, water efficiency and resource-conscious planning. The five-year framework targets 1 GW of cumulative data centre IT load by 2031 and aims for Karnataka to account for 10–12% of India’s AI-ready data centre capacity.
The policy carries a revised implementation framework of ₹1,300.45 crore and seeks to attract investments across data centre units, parks, edge facilities, cable landing stations and allied infrastructure. Its significance lies in shifting the policy focus from capacity creation alone to the sustainability of high-density computing infrastructure.
Green Infrastructure Gets Policy Priority
Karnataka plans to incentivise greater adoption of renewable energy, advanced cooling systems, efficient power consumption and treated-water utilisation. Monitoring of Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) is also envisaged, while resource heat mapping will help assess local power and water availability before new facilities are developed.
The policy proposes Sustainable Data Centre Zones and Parks along with a dedicated Centre of Excellence for research, innovation and skilling. It also supports AI-enabled, quantum-ready and edge-computing infrastructure.
Beyond Bengaluru: A Distributed Digital Economy
A major governance component is the expansion of data centre infrastructure beyond Bengaluru through regional corridors and planned facilities in locations including Hoskote, Mysuru and Mangaluru. The approach is designed to distribute digital infrastructure while aligning new projects with available power, water and connectivity.
Governance Impact: Karnataka is effectively tying digital infrastructure growth to resource efficiency, investment facilitation and regional development—creating a policy framework where AI expansion is planned alongside energy and water sustainability.
