Karnataka data centre policy targets 1 GW IT load by 2031

The Sustainable Data Centre Policy 2026–2031 is a five year framework aimed at positioning the state as a global hub for next generation digital infrastructure.

sustainable data policyOther key features of the policy include investment facilitation across the Data Centre ecosystem, including parks, edge centres, cable landing stations and allied infrastructure.

The Karnataka Cabinet Friday cleared the Sustainable Data Centre Policy 2026–2031, a five-year framework aimed at positioning the state as a global hub for next-generation digital infrastructure. The policy seeks to achieve 1 GW of cumulative Data Centre IT load and account for 10–12 per cent of India’s AI-ready Data Centre capacity by 2031.

Announcing the decision, Information Technology Minister Priyank Kharge said the new policy was a “course correction” to balance growth with sustainability. “Our objective is not simply to add more capacity, but to build the right capacity, in the right locations and with the right infrastructure. This means greater use of renewable energy, newer cooling technologies, better water management and stronger connectivity,” he said.

In March, The Indian Express reported that Karnataka was looking at a sustainable data centre policy to address concerns over high water and power usage by the industry.

The policy has set aside a revised budget of Rs 1,300.45 crore for its implementation over the next five years.

Other key features of the policy include investment facilitation across the Data Centre ecosystem, including parks, edge centres, cable landing stations and allied infrastructure, emphasis on sustainability through renewable energy adoption, advanced cooling, water management, and monitoring of Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE); and establishment of Sustainable Data Centre Zones/Parks and a Centre of Excellence for research and innovation, among others.

The Department of Electronics, IT, Biotechnology and Science & Technology will roll out the policy, with the Karnataka Innovation and Technology Society serving as the registration and implementation interface. Karnataka Udyoga Mitra will act as the single window clearance agency for proposals, according to the minister.

Kharge said that Karnataka was among the first states to recognise the importance of data centres, but the new policy reflects the need to balance growth with responsibility. “Karnataka has the technology ecosystem and talent to lead India’s next phase of digital infrastructure, and this policy is designed to ensure that this growth is both globally competitive and sustainable,” he said.

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