# Karnataka cabinet approves data centre policy with 1 GW target 2026-09-22T06:11:49+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Karnataka's cabinet has approved a Sustainable Data Centre Policy for 2026-31, targeting 1 GW of cumulative data centre IT capacity by 2031 and a 10-12% share of India's AI-ready data centre capacity. The five-year policy has a budget of Rs 1,300.45 crore, with incentives linked to power and water efficiency. The policy creates Sustainable Data Centre Zones, a Centre of Excellence and new data centre corridors outside Bengaluru. It covers data centre units and parks, edge data centres, cable landing stations and AI and quantum computing infrastructure, with incentives for capital investment, land, electricity, connectivity, renewable energy, R&D, skilling and MSME participation. IT/BT Minister Priyank Kharge said the policy marks a course correction as AI increases infrastructure demands. The Department of Electronics, IT, BT and S&T will anchor implementation, with Karnataka Innovation and Technology Services as the registration interface and Karnataka Udyoga Mitra as the single-window clearance agency. ## Indian Opinion Analysis India's total data centre capacity hit 1,575 MW as of August, up from 375 MW in 2020. Karnataka's new policy aims to add 1 GW over five years, roughly two-thirds of the entire existing national stock. Land, water and renewable energy are already contested resources: Karnataka had six of India's 13 high-stress districts for groundwater in the 2021 Central Ground Water Board assessment. The state's electricity regulator has also flagged a widening supply gap in peak hours. Paired with the Budget's Rs 1,300.45 crore outlay, about Rs 260 crore per year, the real measure will be how many of the targeted megawatts actually secure land, power purchase agreements and treated water supply. The first zone designations, expected within the year, will signal which districts beyond Bengaluru get priority. ## Coverage - medianama.com Tags: Bengaluru, Karnataka, Karnataka Innovation and Technology Services, Priyank Kharge, Sustainable Data Centre Policy Canonical: https://indianopinion.org/karnataka-cabinet-approves-data-centre-policy-with-1-gw-target/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/karnataka-cabinet-approves-data-centre-policy-with-1-gw-target/#story-in-brief