Karnataka approves sustainable data centre policy, targets 1 GW capacity by 2031
The Karnataka government has approved two five-year policy frameworks — the Karnataka Sustainable Data Centre Policy 2026-2031 and the Karnataka Marine Biotechnology Policy 2026-2031 — covering the State's digital infrastructure and its coastal bioeconomy.
The sustainable data centre policy is intended to establish Karnataka as a globally competitive destination for data centre investment, while addressing the energy and water demands such facilities place on local resources. It sets a target of 1 gigawatt (GW) of cumulative data centre IT load by 2031, with the stated ambition of accounting for 10-12% of India's AI-ready data centre capacity. A revised budget framework of ₹1,300.45 crore has been proposed for implementation.
According to the government, the policy gives emphasis to renewable energy adoption, energy efficiency, advanced cooling technologies, water management, carbon emission mitigation, and the monitoring of power usage effectiveness and water usage effectiveness.
Among its key measures is resource heat mapping for data centres, which the government says will allow evidence-based planning around water and energy availability and support sustainable site selection. The policy also proposes performance-linked sustainability incentives to encourage efficient power and water use and the adoption of sustainable operating practices. It envisages dedicated sustainable data centre zones and data centre parks, and seeks to support development beyond Bengaluru, in an effort to create a more distributed digital infrastructure ecosystem across the State.
Priyank Kharge, Minister for Home, Information Technology, Biotechnology and E-Governance, said Karnataka was among the early States to recognise the importance of data centres and to create a policy framework supporting their growth. He noted that the technology landscape has changed significantly, particularly with the rapid growth of artificial intelligence, and that the government has become more conscious of the environmental footprint of this infrastructure.
"The Sustainable Data Centre Policy is therefore an important course correction — one that allows us to continue attracting the data infrastructure that the digital economy needs, while making sustainability, energy efficiency and responsible use of water central to how we plan and develop this sector," he said.
He added that the objective was "not simply to add more capacity, but to build the right capacity, in the right locations and with the right infrastructure", citing greater use of renewable energy, newer cooling technologies, better water management and stronger connectivity, along with opportunities beyond Bengaluru.
The policy will be implemented through a phased five-year roadmap. The Department of Electronics, Information Technology, Biotechnology and Science & Technology will anchor implementation, with KITS serving as the registration and policy implementation interface for eligible entities. Karnataka Udyoga Mitra, under the Department of Commerce and Industries, will act as the Single Window Agency for clearance of data centre proposals.
The Karnataka Marine Biotechnology Policy 2026-2031 is a five-year framework aimed at unlocking the economic potential of the State's marine and coastal resources and positioning Karnataka as a leading hub for marine biotechnology and the blue bioeconomy. It aims to grow the State's blue bioeconomy from approximately $2 billion to $6-8 billion by 2031, while securing a larger share of India's emerging blue bioeconomy opportunity. It also targets roughly 2,500 high-value technical jobs and 7,500 coastal enterprise and livelihood opportunities through the growth of the marine biotechnology ecosystem.
The policy will focus on translating marine science and research into commercial applications, strengthening coastal innovation infrastructure, creating new enterprise and employment opportunities, and promoting the sustainable utilisation of marine resources. Taken together, the two approvals set out the State's approach to two resource-intensive sectors — digital infrastructure and the coastal economy — with sustainability written into both frameworks.
