The Government of Karnataka has approved the Karnataka Sustainable Data Centre Policy 2026-2031, a five-year policy framework designed to establish the State as a globally competitive and sustainable destination for data centre investments.
The policy targets 1 GW of cumulative data centre IT load by 2031, with an ambition to account for 10-12% of India’s AI-ready data centre capacity. It proposes a ₹1,300.45 crore revised budget framework for implementation.
Sustainable progress
The revised policy envisages sustainable data centre development, with emphasis on renewable energy adoption, energy efficiency, advanced cooling, water management, carbon emission mitigation, and monitoring of power usage effectiveness and water usage effectiveness.
Data centre resource heat mapping to enable evidence-based planning around water and energy availability and support sustainable site selection, performance-linked sustainability incentives to encourage efficient power and water usage and the adoption of sustainable operating practices, and sustainable data centre zones/data centre parks are some of the highlights. The revised policy also aims to support data centre development beyond Bengaluru in a bid to create a more distributed digital infrastructure ecosystem across the State.
Enviromental footprints
Priyank Kharge, Minister for Home, Information Technology, Biotechnology, and E-Governance, pointed out that Karnataka was among the early States to recognise the importance of data centres and create a policy framework to support their growth. He acknowledged that the technology landscape has changed significantly, particularly with the rapid growth of AI and said 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.
“Our objective is not simply to add more capacity, but to build the right capacity, in the right locations and with the right infrastructure. This means greater use of renewable energy, newer cooling technologies, better water management and stronger connectivity, while also creating opportunities beyond Bengaluru. Karnataka has the technology ecosystem and talent to lead India’s next phase of digital infrastructure, and this policy is designed to ensure that this growth is both globally competitive and sustainable,” he added.
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 (KUM), Department of Commerce and Industries, will serve as the Single Window Agency for clearance of Data Centre proposals.
Blue bioeconomy
The government also approved the Karnataka Marine Biotechnology Policy 2026-2031, 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.
The policy aims to grow Karnataka’s blue bioeconomy from approximately $2 billion to $6–8 billion by 2031, while helping the State secure a larger share of India’s emerging Blue Bioeconomy opportunity. It also aims to create approximately 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 sustainable utilisation of marine resources.
Karnataka Institute of Marine Biotechnology and Blue Economy (KIMBE) will be established as the institutional anchor for marine biotechnology research, innovation, commercialisation and ecosystem development.
It has a proposed five-year budget of ₹120 crore, including investments in KIMBE, Marine Biotechnology Zones, the Seaweed Value Addition PLI, the Karnataka Pilot Blue Carbon Certification Programme.
Published – September 18, 2026 09:18 pm IST
