Fresh investment plans are placing Karnataka at the centre of India’s expanding data centre and AI infrastructure push, with projects worth around Rs 1,350 crore taking shape across multiple cities.
Datasamudra, the data centre arm of Teleindia Datacenter, plans to invest between Rs 300 crore and Rs 500 crore over the next few years to expand operations outside Bengaluru. People familiar with the plans said the company will build a 35 to 40 MW AI driven data centre in Mangaluru, along with smaller 5 MW edge facilities in Mysuru and Hubballi Dharwad.
At the same time, Bengaluru based power electronics firm Elmeasure is preparing to invest around Rs 800 crore to Rs 850 crore to manufacture electrical components used in data centres within the state.
These projects add to growing activity in Karnataka’s data centre ecosystem. Japanese operator NTT recently invested Rs 2,400 crore to expand its Bengaluru campus. The new investments are focused on meeting the rising power and resilience needs of AI era hyperscale data centres, where rack power density has increased to 80 to 100 kW.
“Our plan is to establish a 35 to 40 MW AI driven data centre in Mangaluru over the next three to four years,” said Balaji Rajagopal, chief operating officer and principal advisor at Datasamudra, speaking to a business daily. “Datasamudra is in talks with a UK based partner for AI modelling and infrastructure collaboration. The company aims to help hyperscalers, startups and MSMEs meet surging compliance and processing needs once the Digital Personal Data Protection Act is fully implemented.”
Rajagopal added that domestic data processing demand is expected to rise sharply within 12 to 18 months as the law takes effect, making regional expansion essential.
Elmeasure plans to set up 2 manufacturing plants, one at KIADB Hardware Park in Bengaluru and another in Chamarajanagar, along with a centre of excellence in Bengaluru. The company will design ultra fast semiconductor based transfer switches that enable power transfer in under 2 milliseconds, compared to the traditional 5 to 8 seconds.
“Everything from the grid to the chip is being rethought. A typical AI centre is like putting a giant motor in a small socket; legacy power systems cannot keep up,” said Nethaji Rajendran, global vice president for strategic partnerships at Elmeasure.
State officials say these private investments align with Karnataka’s broader strategy. The Karnataka Digital Economy Mission is positioning Mangaluru as a 1 GW cable to cloud data centre cluster, citing cost advantages in land, power reliability above 98 percent, and 10 to 15 percent cooling savings due to the coastal climate.
With hyperscalers and domestic firms expanding both infrastructure and manufacturing, Karnataka is strengthening its position as a major hub for India’s next phase of digital growth.
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