Karnataka is preparing to implement a comprehensive and sustainable Data Centre Policy, aimed at supporting the growing infrastructure demands of artificial intelligence. The initiative, announced by Atheeq, the financial advisor to Karnataka Chief Minister D K Shivakumar, highlights the state's commitment to fostering AI development. The policy is expected to provide the digital infrastructure necessary to meet the needs of AI-driven industries and startups. It is part of a broader strategy to position Karnataka as a leading hub for AI innovation in India.

The policy announcement was made at the inaugural GCC Summit 2026, organized by Maxpo Exhibitions Pvt Ltd. in partnership with the Department of Electronics, Information Technology and Biotechnology. The summit brought together key stakeholders from the technology and AI sectors. Atheeq emphasized the importance of reliable power and water supply for data centres, which are critical for AI operations. The policy is designed to ensure that these essential resources are available to support the rapid expansion of AI infrastructure in the state.

According to key figures, Karnataka is working on a policy that will be rolled out very soon. The state has over 1,080 Global Capability Centre units, which account for nearly 34 per cent of the country's total. These units are expected to benefit from the new policy, which aims to create a more sustainable and efficient data centre environment. The initiative also includes plans to establish India's first and largest public sector-led AI University, which will further bolster the state's AI ecosystem.

In India, the policy is expected to have a significant impact on the tech and AI sectors. It will provide shared access to GPU computing at affordable rates, which is crucial for startups that often struggle with the high costs of AI infrastructure. The policy also envisions the creation of a large public AI resource library that is open and accessible to all. These measures are expected to accelerate AI innovation and attract more investment to the region.

The Data Centre Policy is still in development, but its implementation is anticipated to play a crucial role in shaping the future of AI infrastructure in Karnataka. The policy's focus on sustainability and accessibility aligns with the state's broader goals of fostering technological innovation and economic growth. As the initiative moves forward, it will be important to monitor its impact on the AI ecosystem and ensure that it meets the needs of both established organizations and emerging startups.