Karnataka is set to attract data center projects worth an estimated 1,350 INR-Crore, strengthening its position as a leading technology hub. The Karnataka data center push reflects the state’s strategy to expand digital infrastructure and support rising demand for cloud and storage services.
Datasamudra, the data center division of Teleindia Datacenter, plans to invest nearly 300–500 INR-Crore over the next few years to expand outside Bengaluru. The company will set up a 35–40 MW AI‑driven data center in Mangaluru. Additionally, it will set up smaller 5 MW edge centers in Mysuru and Hubballi‑Dharwad. Datasamudra is also in talks with a UK‑based partner for AI modelling and infrastructure collaboration. The company aims to help hyperscalers, startups, and MSMEs meet surging compliance and processing needs once the Digital Personal Data Protection (DPDP) Act is fully implemented.
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Similarly, Bengaluru‑based power electronics firm Elmeasure will invest 800–850 INR-Crore to manufacture data center electrical components in Karnataka. These plans add to other investments in the data center ecosystem of Karnataka. Japanese operator NTT recently pumped in approximately 2,400 INR-Crore to expand its Bengaluru campus. The new projects will further meet the power and resilience demands of AI‑era hyperscale facilities, where rack power densities have surged to 80–100 kW.
The Karnataka data center expansion also shows how private and public initiatives are converging around Mangaluru, Mysuru, and Hubballi‑Dharwad, which are emerging as new hubs beyond Bengaluru.
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