Karnataka plans 500 MW AI data hub in coastal region; clusters to come up across state: MB Patil

• Karnataka plans a 500 MW AI data hub in its coastal region.
• 20-200 MW data centres proposed in Tier-2, Tier-3 cities.
• State targets Rs 25,000-30,000 crore ESDM investments soon.

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Karnataka Minister for Large and Medium Industries MB Patil on February 25 said state plans to develop its coastal region as a 500 MW artificial intelligence (AI) data hub, alongside setting up data centre clusters of varying capacities across multiple locations.

“Officials have been directed to conduct a feasibility study to examine the establishment of a cable landing station in Mangaluru to support the proposed infrastructure”, he said.

“To support the growth of the ESDM sector, AI data centre clusters of varying capacities will be developed at multiple locations across the state, including the coastal district of Dakshina Kannada,” Patil said after chairing meetings of the ESDM and Core Manufacturing Vision Groups. He added that a joint meeting with the Energy and IT Ministers will be convened shortly to take the proposal forward.

Patil said the government aims to create a conducive ecosystem to attract hyperscale data centres with capacities exceeding 500 MW. In addition, facilities ranging from 20 MW to 200 MW are proposed in Tier-2 and Tier-3 cities, with efforts under way to draw investments into these locations.

Also, read: Why Mangaluru is emerging as the new tech ‘Plus One’ to Bengaluru

According to the minister, several globally reputed companies in the ESDM space have expressed interest in investing between Rs 25,000 crore and Rs 30,000 crore in the coming years, and the state will take proactive steps to secure a substantial share of these investments. Karnataka will also build infrastructure for component assembly, testing facilities, packaging and specialised warehousing, he said.

Citing global benchmarks, Patil pointed to industry-oriented training models in the US state of Arizona and said similar high-quality training centres could be set up in Tier-3 and Tier-4 cities in Karnataka. The government is also exploring the possibility of enabling leading global universities in semiconductor-focused cities to establish campuses in the state.

He said the functioning of data centres and specialised universities in the United States will be studied, along with Malaysia, where clusters of 50 MW to 200 MW data centres have come up over the past five years. A high-level State delegation may be sent to both countries to examine best practices.

On the Core Manufacturing sector, Patil said iron ore availability plays a decisive role, but restrictions on its utilisation within the state need review. A suitable policy framework will be formulated, and the matter will be examined positively, he said.

He said that automotive manufacturers now import specialised grades of steel and said the government will review industry demands to support domestic production of such steel at the earliest.