Karnataka finalising data center policy to support AI and GCC growth

Government of Karnataka is finalising a comprehensive data center policy aimed at strengthening the state’s digital infrastructure to support artificial intelligence (AI) workloads and the continued expansion of Global Capability Centres (GCCs).

L.K. Atheeq, IAS, Financial Advisor to the Chief Minister and Chairman of the Bengaluru Business Corridor, said the proposed policy is intended to address the infrastructure requirements of next-generation computing while complementing the state’s broader AI strategy.

He also reiterated the government’s plans to establish what it describes as India’s first public sector-led AI University and an AI Hub to support research, innovation and commercialisation. According to Atheeq, a Vision Group for the proposed AI University will be constituted with participation from private sector stakeholders. He added that the government is also looking to expand GCC investments beyond Bengaluru into emerging technology clusters across the state.

Atheeq said GCCs have evolved from back-office operations into strategic centres responsible for product development and innovation, and that Karnataka intends to continue investing in the talent, infrastructure and innovation ecosystem required to support this transition.

Separately, Avinash Menon Rajendran, IAS, Managing Director of the Karnataka Innovation and Technology Society (KITS), said the next phase of GCC growth in the state will depend on AI capabilities, skilled talent and supportive policy frameworks.

He highlighted Karnataka’s dedicated GCC policy, the NIPUNA skilling initiative for emerging technologies and KATALYST, a facilitation mechanism for GCCs, as key components of the state’s strategy to attract high-value global investments. He added that the government remains focused on strengthening talent development and innovation to maintain Karnataka’s position as a preferred destination for global capability centres.

The announcements reflect Karnataka’s broader efforts to expand digital infrastructure and policy support as enterprises increase investments in AI, cloud computing and engineering-led GCC operations.

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