According to Priyank Kharge, there are currently 32 private data centers operating in the state. | Photo Credit: PHOTOS FOR REPRESENTATIVE PURPOSES
Amid concerns over environmental costs, particularly water and energy consumption, Karnataka is revising its data center policy, IT/BT Minister Priyank Kharge informed the state legislature on Wednesday.
Explaining the cost involved in setting up data centres, Mr Kharge said that to set up one megawatt data center around ₹ 70 crore is required and the total power consumption, including cooling/infrastructure, is about 1.7 MW of power. About 25 million liters of water are needed per year for one MW data center. However, the actual cost depends on the location and land price, sources said.
However, he noted that new technologies are emerging that allow the use of treated water in data centers. “We need to revisit our policy, which is 2 to 3 years old,” he said
Answering a question from BJP’s Dheeraj Muniraju from Doddaballapur, Mr. Kharge said that 32 private data centers are currently functioning in the state. “We already have a data center policy that we are revising,” he added.
‘necessary evil’
The minister described data centers as a “necessary evil”, saying they were essential for artificial intelligence, machine learning and other emerging technologies, but also used large amounts of water and energy.
Earlier, Mr. Muniraju said Bengaluru was losing out on data center investment as companies moved to other Indian cities. According to him, Bengaluru currently ranks fifth among Indian cities for data centers after Mumbai, Hyderabad, Chennai and Delhi.
Mr. Muniraju noted that several global technology firms have offices in Bengaluru and suggested that their data centers should be retained in the city.
Sustainable politics
Mr. Kharge said the government was working on a “sustainable data center” policy and would focus on Mangaluru and other coastal areas. “Hyperscale data centers may not be suitable for Bengaluru, which does not have a port and lacks abundant water resources,” he said.
Data centers requiring more than 40 MW of power would fall into the hyperscale category, he added.
The minister also said that negotiations are underway with private companies to lay submarine cables in the coastal region. He wrote to the Union Telecom Ministry seeking a landing station for the submarine cable in Mangaluru, and the ministry responded positively, saying it would extend support if private companies took up the implementation.
Published – 11 March 2026 19:58 IST
