Karnataka Data Centre Policy to Boost AI Infrastructure & GCC Growth, State Signals Next Phase of Digital Expansion

Representative image: Modern hyperscale data centre campus symbolising Karnataka's push to strengthen AI infrastructure and Global Capability Centre growth.

By Samarjit Kaur

on July 16, 2026

Karnataka Data Centre Policy is set to be rolled out by the state to strengthen the digital infrastructure needed for artificial intelligence (AI) and next-generation computing.

With this progress, the state seeks to cement its position as India’s leading technology and Global Capability Centre (GCC) hub.

The announcement was made by L K Atheeq, Chairman of the Bengaluru Business Corridor and Financial Adviser to Chief Minister D K Shivakumar, during the inaugural GCC Summit 2026 in Bengaluru.

According to the state government, the upcoming policy is designed to support AI-driven innovation while addressing the growing infrastructure needs of multinational companies expanding their engineering, research and digital operations in Karnataka.

Also Read: Karnataka Government Sets Up Expert Panel to Draft Responsible AI Policy

Policy Aims to Strengthen AI and Digital Infrastructure

The proposed policy will focus on building the infrastructure required for AI workloads, cloud computing and advanced digital services.

It is expected to create a more favourable environment for data centre investments by addressing key requirements such as land availability, reliable power supply and long-term infrastructure planning.

The move forms part of Karnataka’s broader AI roadmap. The state has already announced plans to establish India’s first public sector-led AI University and a dedicated AI Hub to promote research, innovation and commercialisation.

A Vision Group comprising industry leaders is also expected to help shape the university’s roadmap.

Also Read: Karnataka unveils concept for India’s first Quantum City in Bengaluru

Growing GCC Ecosystem Drives Fresh Investments

Karnataka remains India’s largest GCC destination, with Bengaluru hosting hundreds of global technology and engineering centres.

State officials believe stronger digital infrastructure will be essential as companies increasingly deploy AI applications and demand larger computing capacity.

The government said the proposed Data Centre Policy will complement these ambitions by enabling faster deployment of AI infrastructure while supporting the expansion of multinational technology firms across the state.

Discussions at the summit also focused on talent development, research collaboration and strengthening Karnataka’s digital economy.

As states across India compete to attract AI and hyperscale data centre investments, Karnataka’s upcoming policy is expected to play a key role in maintaining its leadership in the country’s fast-growing digital infrastructure market.

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