Karnataka to develop AI data zones: Industries minister M B Patil

Karnataka will develop artificial intelligence (AI) data centre zones of varying capacities across the state, including in the coastal district of Dakshina Kannada, industries minister M B Patil said on Wednesday.

The zones will support the growth of the electronic system design and manufacturing (ESDM) sector, he said in a prepared statement. The government will soon meet the energy and IT ministers to advance the proposal, he said.

Patil addressed a meeting of the ESDM and core manufacturing vision groups, an industry body set up by the government to shape future industrial growth, said the statement.


The state will create an enabling environment for three categories of data centres such as hyperscale facilities above 500 MW, medium-capacity centres ranging from 20 MW to 200 MW in tier two and tier three cities, and a dedicated 500 MW AI data hub in the coastal region, said the minister.

The government will develop the coastal region as an AI data hub with a capacity of 500 MW, he further said. Officials will conduct a feasibility study on setting up a cable landing station in Mangaluru.

Global ESDM companies are keen to invest Rs 25,000 crore to Rs 30,000 crore in the next phase, the statement said. This will mark their second round of investment, and the state will take steps to secure a larger share, he said. Karnataka will also build infrastructure for component assembly, testing facilities, packaging, and specialised warehousing.

Entrepreneurs have asked the government to establish high-level training centres in tier three and tier four cities, he said. The state is considering a proposal to allow leading universities based in global semiconductor hubs to open campuses in India.

Karnataka will study how data centres and specialised universities operate in the United States. It will also examine Malaysia, where clusters of 50 MW to 200 MW data centres have emerged over the past five years. The government has discussed sending a high-level delegation to both countries, the minister said.

The sector must meet net-zero targets, he said. To achieve this, the state must ensure adequate supplies of natural gas and recycled fuel. Soft-iron producers must invest more in pollution-control technologies, he further added.

Industries department principal secretary Selvakumar, industries commissioner Gunjan Krishna, Invest Karnataka Forum chief executive Jyotsna, Udyog Mitra managing director Doddabasavaraju, Infineon managing director Vinay Shenoy, Hitachi Energy managing director Venu Nuguri, Tata Semiconductors managing director Charan Gurumurthy and Jindal Steel chief executive Jayant Achary attended the meeting, the statement said.