Karnataka approves Sustainable Data Centre Policy 2026–2031

The Karnataka State Cabinet has approved the Sustainable Data Centre Policy 2026–2031, a five-year framework aimed at establishing the state as a competitive destination for digital infrastructure. The policy includes a revised budget of Rs 1,300.45 crore to fund incentives for investments, green energy adoption, and workforce skilling.

Key objectives of the policy include achieving a cumulative data centre IT load of 1 GW by 2031 and securing 10–12 per cent of India’s AI-ready data centre capacity. The framework emphasizes sustainability through the use of renewable energy, advanced cooling systems, and efficient water management to mitigate the environmental footprint of the sector.

To decentralize growth, the policy seeks to expand investment corridors beyond Bengaluru. It will offer efficiency-linked incentives to attract global tech firms, specifically targeting the needs of artificial intelligence and emerging technologies while addressing concerns regarding power and groundwater usage.