KDEM Highlights Mangaluru Role in Karnataka Data Network

In a significant step towards advancing Karnataka’s digital infrastructure strategy, the Karnataka Digital Economy Mission (KDEM),together with the Silicon Beach Program (SBP) and Deloitte as the knowledge partner, submitted the landmark feasibility report titled “Mangaluru: India’s Next Potential Data Centre Hub – A Feasibility Study” to the Government of Karnataka.

The report was formally presented to Shri Priyank Kharge, Hon’ble Minister for IT/BT & RDPR, and Dr. N. Manjula, IAS, Secretary, Department of Electronics, IT, Bt and S&T, during the Data Centre Roundtable at Bengaluru Tech Summit 2025.

This comprehensive study provides a data-backed assessment of Mangaluru’s readiness to emerge as India’s next major data centre destination and a vital pillar in Karnataka’s Beyond Bengaluru mission. Strengthened by coastal advantages, competitive land and energy economics, expanding GCC activity, and growing AI adoption, the report outlines a pathway to develop a future-ready 1 GW+ Data Centre Cluster supported by a potential submarine cable landing station and green energy backbone.

A Strategic Roadmap for India’s Next Data Infrastructure Frontier

The feasibility study offers a forward-looking blueprint for how Karnataka can lead India’s next phase of data centre expansion, at a time when the national market is projected to reach USD 21.8 billion by 2030. As India undergoes rapid digital transformation powered by AI/ML workloads, cloud proliferation, data localisation mandates, and explosive OTT and gaming consumption, demand is shifting beyond traditional hubs.

With Mumbai and Chennai currently hosting 70% of India’s data centre capacity, the report identifies a structural shift underway, driven by the need for distributed, low-latency, and cost-efficient data infrastructure.

Karnataka, home to one of the world’s most significant technology ecosystems centred in Bengaluru, is uniquely positioned to anchor this next wave of nationwide expansion. 

The report strongly advocates a decentralised hub-and-spoke model, with:

• Bengaluru as the core hyperscale hub

• Mangaluru and Hubballi emerging as regional spokes for edge infrastructure, latency optimisation, and energy-efficient AI-ready capacity

Within this framework, Mangaluru emerges as one of India’s most compelling next-wave data centre destinations, offering:

• Lower land and power costs relative to Mumbai/Chennai

• A supportive coastal industrial ecosystem

• An expanding digital talent pool and GCC presence

• Increasing enterprise cloud and AI adoption across the coastal corridor

Shri B.V. Naidu, Chairman, Karnataka Digital Economy Mission (KDEM)

“Karnataka has consistently led India’s technology narrative, and as we enter an era shaped by AI, data sovereignty, cloud adoption, and green digital infrastructure, our responsibility is to architect future-ready foundations. The insights from this study reaffirm that Mangaluru is uniquely positioned to become a strategic node in Karnataka’s distributed digital infrastructure framework. With its coastal advantage, competitive operating environment, and rapidly evolving talent and industry ecosystem, the region can play a pivotal role in advancing the state’s Beyond Bengaluru mission.

At KDEM, we remain committed to working closely with the Government of Karnataka to enable the right policy pathways, investor confidence, and infrastructure support required to build a resilient, secure, and globally competitive digital ecosystem. Mangaluru represents one of Karnataka’s strongest opportunities in this direction. Its coastal advantage, competitive operating environment, and emerging tech ecosystem position it to become a high-potential data infrastructure hub, a globally competitive Cable-to-Cloud-to-Chip corridor. Emerging as a high-potential data infrastructure hub reflects not just regional growth, it reflects Karnataka’s long-term vision for balanced, sustainable, and innovation-led development.”

Rohith BhatLead Industry Anchor – Mangaluru Cluster, KDEM & Founding Member, Silicon Beach Program
“Mangaluru is at an inflection point. As global digital infrastructure shifts toward AI, hyperscale computing, and high-performance connectivity, regions that can offer talent, cost efficiency, and resilience will define the next decade of growth. Mangaluru has already demonstrated this momentum with a strong academic base, rising GCC presence, competitive operating costs, and a rapidly expanding innovation ecosystem.

This feasibility study presents a clear, data-backed case for why Mangaluru can evolve into India’s premier coastal data infrastructure hub. With the right policy support and coordinated execution, we can build a 1 GW+ green data centre cluster, anchor high-value digital jobs, and create a globally competitive Silicon Beach for India.  I can say with conviction: Mangaluru is no longer an emerging story, it is India’s next big opportunity.”

With focused policy action, targeted anchor investments, and coordinated development across power, land, and connectivity, the report concludes that Mangaluru can evolve into a sustainable, resilient, and cost-competitive data centre hub, complementing Bengaluru in a high-impact state-wide hub-and-spoke architecture.

This initiative is expected to:

• Catalyse long-term digital and economic development across the Mangaluru–Udupi–Karavali belt

• Generate high-value jobs in data infrastructure, engineering, operations, and AI

• Position Karnataka as a national leader in green, sovereign, and AI-ready data infrastructure