Karnataka calls for industry 'laundry list' to customise policies for data centres

Karnataka Minister for Information Technology and Biotechnology (IT-BT) Priyank Kharge (File Photo)

Karnataka information technology (IT) minister Priyank Kharge on December 3 asked the data centre industry to submit a detailed “laundry list” of gaps in infrastructure, regulations and policy to enable the state government to customise support for the sector's data centre growth.

The government is ready to come out with new rules and create regulatory sandboxes if the industry provides a precise breakdown of its requirements.

“Give me your laundry list. What is it about fibre you need, what is it about recovery you require, what in our policy does not work for you. If you want a framework or a sandbox, I will get you one,” he told industry leaders at the 8th ASSOCHAM Smart Datacenters & Cloud Infrastructure Conclave.

Karnataka would create a dedicated facilitation mechanism for data centres, similar to its Katalyst programme for global capability centres (GCC), he said.

The electronics, IT & BT department recently launched the Katalyst Karnataka GCC, a dedicated ease-of-doing-business cell, offering streamlined clearances, single-window support and a playbook for new GCCs.

The call for industry inputs comes alongside an Assocham-PwC report that positions Karnataka as a frontrunner in India’s plan to build sustainable, AI-ready digital infrastructure.

India’s data centre investments are projected to rise sharply by 2030, supported by surging cloud demand, AI workloads and the growth of digital services, it said.

The state accounts for 42 percent of India’s IT exports and hosts a large cluster of startups and GCCs, making it one of the most attractive destinations for next-generation data centres.

The report also talked about emerging hubs in Tier 2 and 3 cities such as Mysuru, Hubballi, Mangaluru and Belagavi, which offer cost advantages, land availability, and improving digital infrastructure.

“We want investments to go where talent is. Bengaluru has talent because people converge here. Now, we want industry to tap clusters across Karnataka,” Kharge said.

The report emphasises the importance of sustainability as data centre power demand grows. Karnataka is preparing a green energy pipeline of nearly 20 gigawatts by 2030 and is developing energy parks near Mangaluru, which the report identifies as ideal for large-scale data centre deployments due to water availability and renewable power potential.

Kharge said the state is building 15 gigawatts of green energy capacity, of which 5 to 8 gigawatts will be earmarked for energy-intensive technologies. “We will ensure Karnataka is energy secure and water secure for emerging technologies,” he said.

The report also said modern data centres must support AI-heavy workloads with GPUs, TPUs, and liquid cooling.

Kharge said the state is already training workers for silicon design, cybersecurity, and other emerging skills. “Tell us what skill sets you need. We will partner with you,” he told the industry.

The government has spent more than Rs 300 crore on skilling and is sending trained semiconductor professionals for deployments abroad.

Kharge said Karnataka’s success depends on aligning with industry requirements and promised quick policy corrections where necessary.

“My report card depends on your success. For us, this is an economic strategy, an employment strategy, and a national development strategy,” he said.