Daijiworld Media Network - Mangaluru
Mangaluru, Dec 28: Mangaluru has been identified as one of India’s most cost-efficient and scalable locations for next-generation data centres, according to the Mangaluru Data Centre Feasibility Study 2025 released by the Karnataka Digital Economy Mission (KDEM) and the Silicon Beach Program (SBP) in collaboration with Deloitte India.
The study, commissioned to assess Mangaluru’s potential in supporting India’s growing demand for cloud computing, artificial intelligence and mission-critical digital infrastructure, highlights the coastal city’s strong economic and operational advantages. It aligns with Karnataka’s broader vision of building resilient, secure and sovereign-aligned digital infrastructure.
According to the findings, land lease rates in Mangaluru average Rs 7.69 per sq ft per month, offering a cost advantage of four to five times compared to Mumbai and up to 95 per cent savings over Chennai, depending on location and asset type. Power tariffs ranging between Rs 5.95 and Rs 6.60 per kWh further strengthen Mangaluru’s competitiveness, undercutting Chennai’s average tariff of Rs 7.50 per kWh and remaining lower than most major data centre markets in the country.
The study also points to high grid reliability and assured industrial water availability as key enablers for large-scale data centre operations, creating a stable foundation for future-ready digital infrastructure.
With India projected to reach 10–12 GW of national data centre capacity by 2030, the report positions Mangaluru as a strategic supporting node in a Bengaluru-led hub-and-spoke model. This approach is expected to facilitate decentralised computing, reduce latency for critical workloads and enhance disaster recovery and business continuity capabilities.
Releasing the report, KDEM chairman B V Naidu said robust infrastructure remains central to digital leadership. He noted that Mangaluru offers an optimal mix of affordability, reliability and capability, making it well suited to host mission-critical workloads while complementing Bengaluru’s role as India’s primary digital hub.
Rohith Bhat, lead industry anchor for the Mangaluru cluster at KDEM and founding member of the Silicon Beach Program, said the city has steadily developed the core elements required for a large-scale data centre ecosystem. These include coastal geography, stable power supply, skilled talent availability and strong multimodal connectivity. He added that the study outlines a clear pathway to unlock up to 1 GW of sustainable, AI-ready data centre capacity in the region, supporting Karnataka’s Beyond Bengaluru growth strategy and the development of future-focused technology clusters across the state.