AI data hub to be developed in Karnataka: Minister Patil

Bengaluru, Feb 25 (PTI) To support the growth of the ESDM sector, AI data centre clusters of varying capacities will be developed at multiple locations across the state, including the coastal district of Dakshina Kannada, Minister M B Patil said on Wednesday.

He added that a meeting with the Ministers for Energy and IT will be convened shortly to discuss this.

With a focus on long-term industrial growth, the minister chaired meetings of the ESDM (Electronic System Design and Manufacturing) and the Core Manufacturing sectors, officials said.

According to the Minister for Large and Medium Industries, there are three categories of data centres, and a conducive ecosystem will be created to establish hyperscale data centres with capacities exceeding 500 MW.

In addition, data centres with capacities ranging from 20 MW to 200 MW are proposed to be set up in tier-2 and tier-3 cities, and efforts are underway to attract investments for the same, the minister said in a statement issued by his office.

Patil said there is also an intention to develop the State’s coastal region as a 500 MW AI data hub.

"Officials have been directed to conduct a feasibility study to examine the establishment of a cable landing station in Mangaluru," he added.

The minister noted that several globally reputed companies in the ESDM sector have expressed interest in investing between Rs 25,000 crore and Rs 30,000 crore in the coming years.

"Karnataka will take proactive steps to secure a substantial share of this investment. The state will also develop infrastructure for component assembly, testing facilities, packaging, and specialised warehousing," he said.

Referring to global best practices, Patil said that in the US state of Arizona, students receive comprehensive industry-oriented training at an early stage. Industrialists have recommended establishing similar high-quality training centres in tier-3 and tier-4 cities across Karnataka.

The government is also exploring the possibility of enabling leading global universities in semiconductor-focused cities to establish campuses in the state, he said.

Patil emphasised the need to study how data centres and specialised universities function in the United States. In Malaysia, clusters of data centres with capacities ranging from 50 MW to 200 MW have been established over the past five years.

"The idea of sending a high-level State delegation to both countries is under consideration," he added.

Turning to the Core Manufacturing sector, Patil said the availability of iron ore plays a decisive role. However, restrictions on its utilisation within the State require review.

A suitable policy framework will be formulated, and the Government will examine the matter positively, he assured.

Patil also noted that automotive manufacturers currently import specialised grades of steel for their requirements. Industry leaders have highlighted the need for support to produce such steel domestically, and the Government will review this at the earliest, he added. PTI AMP SSK