Bengaluru, March 11 (NationPress) Dheeraj Muniraju, an MLA from the Bharatiya Janata Party and president of BJP Yuva Morcha, called on the Congress-led Karnataka government to establish dedicated data centre parks in Bengaluru and its surrounding regions.

He referenced reports indicating that a significant Google data centre project relocated to Visakhapatnam in Andhra Pradesh rather than Bengaluru.

In response, Karnataka's Minister for IT and Biotechnology, Priyank Kharge, noted that the Andhra Pradesh government had provided considerable subsidies for the project and emphasized that Karnataka would adopt a more sustainable strategy. “Data centres are crucial, but there are more effective methods to manage them,” he remarked.

During a Question and Answer session in the Assembly, Muniraju highlighted that Bengaluru, recognized as the IT capital, currently lacks designated parks for colocation and enterprise data centres.

“Bengaluru is famously known as the global IT hub. While the IT boom is heading towards the northern part of the city, the same cannot be asserted for data centres. The government has not established dedicated data centre parks, forcing companies to rely on private providers and encounter various challenges,” he stated.

Muniraju pointed out that leading companies are relocating to other cities. “The highest concentration of data centres is in Mumbai, followed by Chennai, with Delhi in fourth place. Bengaluru has dropped to fifth. Whether it’s social media, streaming services, AI technologies, or cloud computing, Bengaluru leads in all these domains. For this, substantial data centres are essential,” he added.

He suggested the development of a major data centre park in Doddaballapur, located north of Bengaluru, where significant land has already been acquired for the Quin City initiative. “Prominent companies like Amazon, Microsoft, Google, Oracle, and Alibaba have their headquarters in Bengaluru. They should also establish their data centres here. Therefore, one data centre park should be designated in Doddaballapur,” he proposed.

Muniraju also noted advancements in other cities. “Hyderabad mirrors Bengaluru, with several data centres emerging there. Reports indicate that Google’s data centre project has shifted to Visakhapatnam. A $13-billion investment related to three Amazon projects has gone to Hyderabad, with facilities situated on the city’s outskirts. Thus, efforts should be directed towards accommodating data centres in Doddaballapur,” he stated.

In his reply, Kharge mentioned that the Visakhapatnam project was backed by substantial incentives.

“Everyone discusses Google relocating to Visakhapatnam, but few mention the costs involved. The Andhra Pradesh government has provided a subsidy of ₹22,000 crore for the Google initiative. The land subsidy is 25%. They have offered a Re 1 reduction in power tariffs per unit for 15 years, a 10% GST exemption for a decade, complete exemption on stamp duty, and a 10% capital subsidy on equipment. The job creation is estimated to be around 1,500,” he explained.

Kharge further emphasized the intensive resource needs of data centres.

“Data centres are highly power-sensitive. For a one-megawatt facility, approximately ₹70 crore is required. Only one megawatt can be installed on an acre of land. Moreover, about 25 million litres of water per megawatt are needed annually to operate a data centre,” he noted.

“If one asks five questions on ChatGPT, around 500 ml of water is consumed. This illustrates the scale of consumption. With new technology, companies are adopting liquid cooling and utilizing treated water. This is why we will reassess our policy and develop a sustainable data centre policy,” he added.

As per the minister, 32 data centres are currently operating privately in Karnataka.

“We have a Data Centre Policy already in place, and we are reviewing it. Establishing data centres is crucial for AI, machine learning, and other emerging technologies. However, data centres are also significant consumers of water and energy. In this context, our government is examining the promotion of sustainable data centres,” he stated.

Kharge also indicated that the revised policy would encourage development beyond Bengaluru.

“Given that the current policy is two to three years old, we aim to make the new policy more sustainable. Our focus extends beyond Bengaluru to Mangaluru and coastal regions. We are in talks with private enterprises. Concerning land allocation in Doddaballapur, there is no land scarcity, and under the policy, we will strive to attract as many data centres as possible. Our emphasis is also on development outside Bengaluru,” he remarked.

He concluded by saying that hyperscale data centres may not be suitable for Bengaluru due to resource limitations.

“Hyperscale data centres may not be a fit for Bengaluru as we lack a port and face water shortages. Our focus will be on small, medium, and large data centres—not hyperscale ones,” Kharge stated.