Karnataka data centre policy targets 1 GW IT load by 2031

The Karnataka Cabinet recently approved the Sustainable Data Centre Policy 2026-2031, a five-year plan to establish the state as a leading global hub for cutting-edge digital infrastructure. The policy aims to achieve a cumulative Data Centre IT load of 1 GW by 2031, accounting for 10-12% of India's AI-ready Data Centre capacity during the same period.

Information Technology Minister Priyank Kharge emphasized that the new policy represents a "course correction" to strike a balance between growth and sustainability. He stressed that the focus should be on building the right capacity in optimal locations, utilizing modern infrastructure, and adopting sustainable practices such as renewable energy, advanced cooling technologies, improved water management, and enhanced connectivity.

In March, The Indian Express had reported that Karnataka was considering a sustainable data centre policy due to concerns about excessive water and power consumption within the industry. The policy has allocated a revised budget of Rs 1,300.45 crore for its implementation over the next five years. Key aspects of the policy include stimulating investment across the Data Centre ecosystem, including data centre parks, edge centers, cable landing stations, and related infrastructure.

It also emphasizes sustainability through the adoption of renewable energy, advanced cooling methods, efficient water usage, and rigorous monitoring of Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE).

The Department of Electronics, IT, Biotechnology, and Science & Technology will oversee the implementation of the policy, while the Karnataka Innovation and Technology Society will handle registration and policy execution. Karnataka Udyoga Mitra will serve as the single-window clearance agency for all proposals, according to the minister.

Kharge highlighted that Karnataka is one of the first states to acknowledge the significance of data centres and that the new policy aims to ensure that growth in the sector remains both globally competitive and environmentally responsible.