The Karnataka Digital Economy Mission (KDEM) is facilitating approximately Rs 1,350 crore in fresh investments for data centres, targeting high-growth corridors in Mangaluru, Mysuru, and Hubballi. 

A highlight of this push is a proposed 40 MW AI-driven data centre in Mangaluru, which leverages the city’s submarine cable landings to create a "cable-to-cloud" hub. 

Supported by a state policy offering 25% capex incentives, these projects are designed to expand India’s server capacity and digital infrastructure beyond the saturated Bengaluru market to meet the demands of 5G and AI computing.