The Government of Karnataka is planning to establish artificial intelligence (AI) data centre clusters of varying capacities across the State, including in the coastal district of Dakshina Kannada, as part of its strategy to accelerate growth in the Electronic System Design and Manufacturing (ESDM) sector.
Industries Minister M. B. Patil stated that the government will create a conducive ecosystem for three categories of data centres. These include hyperscale facilities exceeding 500 MW, medium-capacity centres ranging from 20 MW to 200 MW in tier-2 and tier-3 cities, and a dedicated 500 MW AI data hub in the coastal region.
According to the minister, the proposed coastal AI data hub will anchor Karnataka’s ambitions in next-generation digital infrastructure. A feasibility study is also being considered for setting up a cable landing station in Mangaluru to strengthen global digital connectivity.
Companies have reportedly expressed interest in investing between ₹25,000 crore and ₹30,000 crore in the coming years, signalling strong industry appetite for AI-focused infrastructure in the State.
Patil said the government will soon hold discussions with the Energy and IT Ministers to move the proposal forward. He was addressing a meeting of the ESDM and core manufacturing vision groups, an industry body constituted by the government to help shape the State’s long-term industrial growth roadmap.
Emphasising the need to adopt global best practices, the minister highlighted plans to study established AI and data centre models in the United States and Malaysia. In parallel, the State will review iron ore utilisation and specialised steel production capabilities to strengthen Karnataka’s core manufacturing base and support infrastructure development tied to the AI ecosystem.
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