The Karnataka data centre policy comprises policy frameworks adopted by the Government of Karnataka to support the development and operation of data centres in the Indian state of Karnataka. The state government approved the Karnataka Data Centre Policy 2022–2027 in April 2022. It sought to attract approximately in investment and establish more than 200 megawatts (MW) of data-centre capacity.
In September 2026, the state government approved the Karnataka Sustainable Data Centre Policy 2026–2031, a revised five-year framework placing greater emphasis on energy efficiency, renewable energy, water management and the environmental effects of data-centre development. The revised policy targets a cumulative data-centre information-technology load of one gigawatt by 2031 and aims for Karnataka to account for 10–12 per cent of India's artificial-intelligence-ready data-centre capacity.
2022–2027 policy The Karnataka Data Centre Policy 2022–2027 was prepared by the state's Department of Electronics, Information Technology, Biotechnology and Science and Technology. The Cabinet of Karnataka approved it on 18 April 2022. The policy described data centres as part of the infrastructure supporting cloud computing, electronic commerce, financial services, online entertainment and other digital services.
Its stated objectives included attracting domestic and foreign investment, developing a data-centre ecosystem and encouraging facilities powered partly by renewable energy. The government set targets of attracting approximately ₹10,000 crore in investment and developing more than 200 MW of capacity by 2025. The state cabinet allocated ₹100.50 crore towards implementing the policy.
The policy applied to data-centre developers and operators, data-centre park developers and cloud-service providers registered in Karnataka. Entities seeking fiscal incentives were required to register with the Karnataka Innovation and Technology Society.
Infrastructure and approvals The policy designated Karnataka Udyog Mitra, the state's investment-facilitation agency under the Department of Industries and Commerce, as the single-window agency for processing data-centre proposals. It provided for coordination with the Karnataka Power Transmission Corporation on electricity connections and allowed qualifying facilities to seek dual-grid connections, open access and additional power feeders.
Data centres were classified as information-technology or information-technology-enabled-service entities for the purposes of state incentives. The policy also proposed treating the industry as a public-utility service under the Industrial Disputes Act, 1947, and introduced modified building rules concerning ground coverage, floor-area ratios, equipment placement, parking and boundary walls.
Incentives Several incentives were directed specifically towards projects established outside Bengaluru Urban district. These included:
a one-time capital subsidy of 7 per cent of eligible fixed assets, capped at ₹10 crore; a land subsidy of 10 per cent, limited to ten acres and capped at ₹3 crore; full exemption from stamp duty for eligible land transactions involving up to ten acres; concessional registration charges; full exemption from land-conversion fees; access to industrial rather than commercial electricity tariffs, subject to renewable-energy requirements; reimbursement of part of the green-power surcharge for qualifying facilities; and exemption from electricity duty for five years after the start of commercial operations.
The capital, land, stamp-duty and land-conversion incentives were intended to encourage data-centre development outside Bengaluru. The policy also allowed the government to consider customised incentive packages for projects involving investments exceeding ₹4,000 crore.
Energy provisions Eligibility for the industrial power tariff required at least 30 per cent of a facility's electricity consumption to come from green-energy sources. Facilities obtaining more than 50 per cent of their energy from renewable sources could receive reimbursement of ₹0.50 per unit for five years, subject to capacity and financial limits.
Sustainable Data Centre Policy 2026–2031 On 18 September 2026, the Karnataka state cabinet, chaired by Chief Minister D. K. Shivakumar, approved the Karnataka Sustainable Data Centre Policy 2026–2031. The five-year framework was presented as a revision of the earlier policy in response to increasing electricity and water requirements associated with data centres and artificial-intelligence infrastructure.
The policy has a proposed budgetary framework of ₹1,300.45 crore and targets one gigawatt of cumulative data-centre IT load by 2031. It also seeks to secure between 10 and 12 per cent of India's AI-ready data-centre capacity.
The revised framework emphasises renewable-energy adoption, energy-efficient operation, advanced cooling systems, water management, carbon-emission reduction and environmental monitoring. Proposed measures include mapping the availability of energy and water to guide the selection of data-centre locations and linking some incentives to sustainability performance.
The Department of Electronics, Information Technology, Biotechnology and Science and Technology is responsible for coordinating the policy. The Karnataka Innovation and Technology Society serves as the registration and implementation interface for participating enterprises. The government stated that implementation would follow a phased five-year roadmap.
See also Data centre List of data centre policies in India Economy of Karnataka Information technology in India Karnataka Digital Economy Mission Digital India
References
External links Data Centre Policy 2022–2027, Department of Electronics, Information Technology, Biotechnology and Science and Technology Karnataka Data Centre Policy 2022–2027 — official policy document