Karnataka Cabinet Clears Sustainable Data Centre Policy, Targets 1 GW IT Load by 2031

The Karnataka Cabinet has cleared the Sustainable Data Centre Policy 2026–31, with the policy covering a five-year period from 2026 to 2031.

Karnataka now aims to achieve 1 GW of cumulative data centre IT load by 2031. The state also aims to account for 10–12% of India’s AI-ready data centre capacity.

The policy aims to expand the data centre ecosystem while reducing its environmental impact, particularly from heat emissions. Data centre operators will be encouraged to increase their use of renewable energy.

The Cabinet has also encouraged data centres to adopt renewable energy sources. Efficient cooling technologies will be implemented to reduce energy consumption.

Better water management will be a key focus area, as data centres require significant amounts of water for cooling. The state will monitor Power Usage Effectiveness (PUE) to improve energy efficiency. Water Usage Effectiveness (WUE) will also be monitored to encourage responsible water consumption.

The policy aims to attract investment across the wider data centre ecosystem, including data centre parks, edge data centres, cable landing stations and allied infrastructure. Karnataka plans to establish sustainable data centre zones and parks. The policy also proposes setting up a Centre of Excellence focused on research and innovation in the sector.

The government has allocated ₹1,300 crore for implementing the policy over the next five years. The Department of Electronics, IT and Biotechnology will roll out the policy, while the Karnataka Innovation and Technology Society will serve as the registration and implementation interface.

Karnataka Udyoga Mitra will act as the single-window agency for project clearances. The government’s stated approach is to describe the policy as a course correction, with an emphasis on building the right capacity, in the right locations and with appropriate infrastructure.