The Karnataka Cabinet has approved the Karnataka Sustainable Data Centre Policy 2026-31 at the specially convened Cabinet meeting in Mangaluru on Friday.

G Parameshwara, Deputy Chief Minister of Karnataka, who addressed media persons after the Cabinet meeting, said the Cabinet has approved a total budgetary framework of ₹1300.45 crore under this policy, which will be implemented from 2026-2031.

The Government wants to develop Karnataka into a sustainable data centre hub. Apart from the expansion of data centres, the policy gives thrust on efficient use of resources such as electricity and water, renewable energy, green technologies.

It also aims to reduce carbon emissions. The policy aims to promote development data centres that are environmental friendly, he said.

A major objective of the policy is to strengthen the digital infrastructure required for the growth of AI, cloud computing, Internet of Things (IoT), 5G, big data and other emerging technologies.

The policy aims for Karnataka to account for 10-12 per cent of India’s AI-ready data centre ecosystem by 2031 and to achieve up to 1 GW of data centre capacity in Karnataka.

The meeting decided to increase the amounts allocated for certain key incentives, including capital subsidies, reimbursement of wheeling charges, demand centre incentives and research and development support. This brings to total budget framework of the policy to ₹1,300.45 crore.

The Karnataka Sustainable Data Centre Policy has identified Mangaluru as a location with significant potential to emerge as a key destination in sustainable data centre expansion in the state.

The Government wants to expand the data centre ecosystem beyond Bengaluru by leveraging the connectivity of the coastal region, future cable landing infrastructure and other advantages.

The Karnataka IT Minister, Priyank Kharge, had previously discussed the possibility of establishing a submarine cable landing facility in Mangaluru with the Central government.

Published on September 18, 2026