Karnataka Poised to Secure Rs 1,350 Crore in Data Centre Projects
Datasamudra, Elmeasure, and global players target Mangaluru, Mysuru, and Hubballi-Dharwad for AI-driven data centre expansion and critical power infrastructure
Karnataka, Dec 22 : Karnataka is set to become a major destination for artificial intelligence (AI) data centres and supporting infrastructure, with private investments totaling over Rs 1,350 crore. The state aims to leverage its coastal climate, reliable power, and skilled workforce to attract hyperscalers and domestic operators alike.
Datasamudra, the data centre division of Teleindia Datacenter, plans to invest Rs 300-500 crore over the next few years to establish a 35-40 MW AI-driven data centre in Mangaluru, along with smaller 5 MW edge centres in Mysuru and Hubballi-Dharwad. The company is in talks with a UK-based partner for AI modelling and infrastructure collaboration to support hyperscalers, startups, and MSMEs amid growing compliance requirements under India’s Digital Personal Data Protection (DPDP) Act.
Meanwhile, Bengaluru-based power electronics firm Elmeasure will invest Rs 800-850 crore to manufacture critical data centre components, including ultra-fast semiconductor-based transfer switches. The firm plans facilities in Bengaluru’s KIADB Hardware Park, Chamarajanagar, and additional sites in Hubballi-Dharwad and Mangaluru, with an eye on exports to West Asia.
These private moves align with Karnataka Digital Economy Mission (KDEM) initiatives. Mangaluru is being positioned as a 1 GW “cable-to-cloud” data centre cluster, offering cost-effective land, 98% power reliability, and up to 15% cooling savings due to its coastal climate. The state aims to capture 20-30% of India’s future data centre capacity along the Bengaluru-Mangaluru corridor.
Global hyperscalers, including Japanese operator NTT, have already invested Rs 2,400 crore in expanding their Bengaluru campus. The combination of AI data centre projects, manufacturing hubs, and supportive state policies—including the Karnataka Data Centre Policy 2022–27—positions Karnataka as both a manufacturing backbone for AI infrastructure and a coastal gateway for India’s growing digital economy.
