Karnataka policy targets greener, larger data-centre network
Karnataka’s new Sustainable Data Centre Policy aims to expand statewide capacity to 1GW by 2031 while encouraging renewable energy, treated water and better efficiency reporting. The policy addresses concerns about electricity, water use and environmental pressure from data centres.
Karnataka has adopted a Sustainable Data Centre Policy aimed at expanding the state’s data-centre capacity to 1GW by 2031 while reducing environmental pressure. The policy offers incentives for facilities using renewable energy and treated water. Data centres obtaining more than half their energy from renewable sources may receive ₹0.50 per unit for five years, subject to an overall cap.
Treated-water costs may also be reimbursed within specified limits. The policy requires plant-level reporting of Power Usage Effectiveness and Water Usage Effectiveness. Facilities with strong efficiency performance may qualify for additional incentives or water-charge reimbursements.
The state has 32 data centres, most around Bengaluru, with major clusters in Electronics City, Whitefield and Devanahalli. Government data records five facilities in Electronics City with combined capacity above 23MW. Estimates put total installed state capacity at about 400MW.
Water use is a concern. Data from 12 Bengaluru facilities indicates peak consumption of up to 1.964 million litres a day, equivalent to the daily demand of about 3,600 four-person households. The policy seeks to balance Karnataka’s AI ambitions with pressure on water and energy resources.
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