Karnataka targets 1 GW AI data hub with $160m+ centre buildout

This story is a microcosm of how AGI infrastructure is diffusing geographically. Karnataka is moving to turn second‑tier cities like Mangaluru, Mysuru and Hubballi‑Dharwad into AI‑era power and compute hubs, not just satellites of Bengaluru. A 35–40 MW “AI‑driven” data centre plus multiple edge sites is non‑trivial capacity when you factor in rising rack densities for GPU clusters. Coupled with NTT’s recent multibillion‑rupee campus expansion, it signals that global and domestic players see coastal Karnataka as a cost‑efficient home for heavy AI workloads.

Two strategic threads matter here. First, as India’s Digital Personal Data Protection (DPDP) Act bites, local processing requirements will push more AI workloads inside national borders and into compliant facilities. These projects are explicitly framed as helping hyperscalers, startups and MSMEs meet those data‑sovereignty and compliance needs. Second, investments in power electronics and fast transfer‑switch manufacturing suggest an effort to build out the electrical backbone for AI centres domestically, not just rent space in foreign‑designed campuses.

For the AGI race, India’s ability to stand up reliable, affordable AI compute at scale will determine whether its talent pool becomes a mere offshore services resource or a true frontier R&D player. Karnataka’s push shows the state understands that GPUs without grid and power‑quality upgrades are a dead end.