Karnataka Emerges as India's Renewable-Powered Data Center Hub
Our Analysis
Karnataka's unique combination of abundant renewable energy, progressive state policies, and established IT ecosystem is creating a new paradigm for sustainable data center development in India. The state's 15+ GW of installed renewable capacity—primarily solar and wind—positions it to meet hyperscaler sustainability mandates that increasingly require 100% renewable power for new facilities.
The state government has implemented data center-friendly policies including reduced electricity duties, single-window clearances, and dedicated infrastructure corridors. Bengaluru's existing concentration of tech talent and enterprise customers provides immediate demand, while emerging locations in Mysuru and Mangalore offer greenfield opportunities with direct access to renewable generation.
For operators targeting carbon-neutral commitments, Karnataka offers a path that's difficult to replicate in traditional data center markets like Mumbai, where renewable power remains constrained by grid limitations and land availability.
Key Takeaways
- 1Karnataka has 15+ GW installed renewable capacity—India's highest concentration
- 2State policies include reduced electricity duties and single-window clearances for data centers
- 3Hyperscalers increasingly mandate 100% renewable power for new facilities
- 4Bengaluru provides enterprise demand; Mysuru/Mangalore offer greenfield RE-connected sites
- 5Renewable PPAs in Karnataka can achieve 30-40% cost advantage vs. grid power in other states
Why This Matters for Infrastructure Investors
The sustainability imperative is reshaping data center site selection. Hyperscalers have made public commitments to 100% renewable operations—these aren't marketing statements but binding corporate objectives. Karnataka's renewable abundance creates a structural advantage: developers who can secure sites with direct renewable interconnection can offer hyperscalers something increasingly scarce globally—guaranteed green power at scale. This is why our Karnataka portfolio prioritizes renewable integration from day one.
Karnataka leads India in renewable energy capacity
Related Analysis
View allIndia Data Center Capacity to Reach 2.5 GW by 2030
India's data center industry is projected to grow from 900 MW to over 2.5 GW by 2030, driven by digital transformation, AI adoption, and hyperscaler expansion.
New Submarine Cable Systems to Transform Chennai into Asia-Pacific Connectivity Hub
Three major submarine cable projects landing in Chennai by 2026 will position the city as a critical node in Asia-Pacific data routing, with implications for data center location strategy.
Stay Ahead of the Market
Get our weekly infrastructure intelligence delivered to your inbox.