Karnataka data centre policy targets 1 GW IT load by 2031

Karnataka has set a target of 1 GW in cumulative data centre IT load by 2031 under a new policy that places water and energy use alongside the State’s ambitions for AI-ready computing capacity.

The Karnataka Sustainable Data Centre Policy 2026-2031 proposes a revised implementation framework of ₹1,300.45 crore. It aims for Karnataka to account for 10-12% of India’s AI-ready data centre capacity by the end of the policy period.

The policy calls for renewable-energy adoption, energy-efficient operations, advanced cooling, carbon-emission mitigation, and monitoring of power usage effectiveness and water usage effectiveness.

It also proposes resource heat maps to guide projects towards locations with suitable water and energy availability. Performance-linked sustainability incentives and designated sustainable data centre zones or parks are among the planned measures.

IT-BT Minister Priyank Kharge said the policy was intended to attract the required digital infrastructure while making efficient energy use and responsible water use central to development. The State also plans to encourage data centre projects beyond Bengaluru.

The Department of Electronics, IT, Biotechnology and Science & Technology will lead implementation. KITS will handle registration and policy implementation for eligible entities, while Karnataka Udyoga Mitra will act as the single-window agency for proposal clearances.