State may explore policy reforms to support growth of data centre industry: Priyank

The Karnataka government may explore certain policy reforms, if required, to support the growth of data centre industry in the State and also to position Bengaluru as a global data centre bub, hinted Priyank Kharge, IT-BT and Rural Development Minister, here on Tuesday.

Speaking at ASSOCHAM’s 8th edition of Smart Datacenters & Cloud Infrastructure Conclave-2025, he invited industry players to come out with specific recommendations, and promised them the government would be willing to make any policy changes to make Karnataka most attractive and develop Bengaluru a hub for data centre infrastructure.

“Karnataka is the place to be for AI, analytics, data centres, cybersecurity, deep tech and everything that’s sustainable and emerging,” he said.

Mr. Kharge reiterated the State’s commitment to supporting innovative and sustainable work in technology. “We will also adopt industry-standard sustainability metrics — and, more importantly, go beyond them,” he told the investor community.

Karnataka’s focus was to ensure that data centres are beyond just being compliant, he said, adding, “This means we will have infrastructure that is energy secure, renewable energy aligned and water secure. We will aggressively reduce carbon footprint and incorporate new technologies such as liquid cooling, advanced thermal management, and other next-generation cooling solutions.”

ASSOCHAM PwC study

An ASSOCHAM-PwC knowledge paper that outlines Karnataka’s digital vision and roadmap to become India’s sustainable and strategic hub for next-generation data infrastructure was released at the summit.

The report on “Heading Towards the Sustainable Data Hub Vision: Karnataka Leading the Way” says Karnataka with its robust digital ecosystem, advanced connectivity, and progressive policies, offers unparalleled opportunities for hyperscale data centres, cloud services, and AI-driven platforms.

Largest data centre

NTT, a $100-billion Japanese conglomerate that operates data centres globally, has opened its largest, 100 MW data centre facility in Bengaluru.

Currently NTT has 150+ MW of AI-driven data centre capacity live globally, while in India it operates 22 live data centres, with several more under construction. It has three Bengaluru data centres at an investment of ₹1,700 crore and has committed an additional ₹2,400 crore for the new campus at Devanahalli.