Sunday, 20 September 2026 · Full edition

Karnataka launches ₹1,300-crore data centre policy to target 1 GW capacity by 2031

Rows of high-density server racks inside a data centre facility with visible cabling and equipment.
Rows of high-density server racks inside a data centre facility with visible cabling and equipment. · Hugovanmeijeren / Wikimedia CommonsCC BY-SA 3.0

What happened

Karnataka has introduced a ₹1,300-crore data centre policy aimed at expanding its compute capacity to 1 gigawatt by 2031. The initiative targets growing demand from artificial intelligence workloads and enterprise digital data across India.

Why it matters

Achieving the 1-gigawatt target will depend on Karnataka's ability to secure reliable power and water supplies. Without adequate utility planning, severe resource bottlenecks could hinder facility deployment despite state incentives.

Bigger picture

Indian states are increasingly competing to host compute infrastructure to support national artificial intelligence ambitions. This dynamic is shifting regional industrial policy toward utility allocation, making grid capacity and water access central to tech growth.

Watch next

Look for official implementation guidelines from state authorities, specifically detailed power allocation frameworks and water management plans for developers.

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