Karnataka Unveils 1,000 MW Data Park Plan, Eyes Massive Private Investment

The Karnataka government has announced an ambitious plan to establish large-scale data park clusters across Bengaluru, Mysuru, and Mangaluru, aiming to position the state as a leading digital infrastructure hub in India. With a combined capacity of 1,000 MW , the initiative marks one of the country’s most significant expansions in data centre infrastructure. The decision, taken at a high-level meeting involving ministers M B Patil, K J George, and Priyank Kharge , reflects a coordinated push to support the rising demand for cloud computing , artificial intelligence , and digital storage.

At the centre of the plan is a 500 MW sustainable data park near Hoskote, on the outskirts of Bengaluru, designed as a hyperscale digital hub powered partly by renewable energy from the Pavagada Solar Park. Water sustainability is a key focus, with the Bengaluru Water Supply and Sewerage Board assuring supply of treated wastewater, reducing dependence on freshwater while operators implement advanced recycling systems. Unlike traditional models, Karnataka is adopting a hub-and-spoke model , with Bengaluru as the primary hub and Mysuru and Mangaluru acting as regional nodes to support edge computing and faster data delivery.

In Mangaluru, around 350 acres has been identified in the Baikampady Industrial Area by the Karnataka Industrial Areas Development Board, leveraging its coastal advantage and proximity to submarine cable networks for international data traffic . Meanwhile, land identification is underway in Mysuru to promote regional expansion and ease infrastructure pressure on Bengaluru. Backed by the state’s Data Centre Policy (2022–2027) , which offers incentives and streamlined approvals, the project is expected to attract thousands of crores in private investment , rather than relying on a fixed government budget. Officials have not disclosed a total project cost, as the initiative follows a public–private investment model , with the government acting as a facilitator by providing land, power, water, and policy support, while private players build and operate the facilities.

A committee led by Deputy Chief Minister D K Shivakumar will oversee implementation, as the government prioritises renewable energy , efficient cooling, and recycled water use. With demand rising due to 5G expansion , AI adoption, and data localisation, the initiative could redefine India’s digital backbone through interconnected infrastructure ecosystems.