Karnataka approves sustainable data centre policy 2026- 2031

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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, sustainable and well-connected destination for Data Centre investments.

The policy seeks to strengthen Karnataka’s digital infrastructure backbone at a time when the rapid growth of Artificial Intelligence, cloud computing, IoT, 5G, Global Capability Centres (GCCs), FinTech and other emerging technologies is driving unprecedented demand for computing capacity.

The policy brings together investment facilitation, digital infrastructure, sustainability and ecosystem development, with a focus on attracting domestic and international investments across the Data Centre value chain. It also seeks to expand Data Centre infrastructure beyond Bengaluru, strengthening emerging regional digital corridors and supporting Karnataka’s broader Beyond Bengaluru vision.

Rs 1,300.45 crore revised budget framework has been cleared for the implementation of the five-year policy. The policy will be implemented through a phased five-year roadmap, beginning with policy operationalisation, investor facilitation and identification of Data Centre Zones and Parks, followed by ecosystem expansion, R&D, skilling, sustainability-linked incentives and consolidation of Karnataka’s position as a sustainable Data Centre hub.