Karnataka has unveiled what it calls a futuristic data centre policy along with a slew of attractive incentives and concessions for investments in these units as the government aims to attract about Rs 10,000 crore in the emerging sector over the next five years.
Apple iPhone 16 Launch
iPhone 16, iPhone 16 Plus launched: Check price, discounts
Apple Event 2024 Live Updates: iPhone 16 launch, Everything you need to know
With the Cabinet clearing the policy on Monday, the southern state joins the league of Maharashtra, Uttar Pradesh, West Bengal, Tamil Nadu and Telangana to have an exclusive policy for the sector. With India’s digital economy estimated to touch $1 trillion by 2025 and the Centre pushing for localising storage of data, states are vying with each other to get big ticket investments in the fledgling data storage sector.
The IT/BT department wants to use the policy to jumpstart the data centre industry with 200 MW in capacity over the next five years. The state currently has eight data centre players including Reliance, Siffy, NTT, NextGen, Trimax, and Airtel and 10 new data centres are expected over the next five years with a capacity of about 170 MW, State's IT/BT Minister CN Ashwath Narayan said.
In July last year, Adani Group, Mantra Data Centers, NTT Netmagic and Web Werks signed up with Karnataka, proposing to invest about Rs 8,000 crore in data centres.
Investments in data centres will get a one-time capital subsidy of 7% on value of fixed assets, excluding land and building. An investor can get up to Rs 10 crore in capital subsidy over the policy period of five years. Besides, the government will also give a land subsidy at 10% of the cost or Rs 3 crore whichever is less on purchase or lease of land.
Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Artificial Intelligence(AI) Basics of Generative AI : Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Language Quickly Using the ChatGPT Open AI" width="300" height="80" />
Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Web Development A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, Developer and Lead Instructor View Program
Finance Financial Literacy - TDS, Budget, Income Tax Act, GST, Indirect tax By - CA Rahul Gupta, CA with 10+ years of domain experience, trainer View Program
Marketing Future of Marketing & Branding Masterclass By - Dr. David Aaker, Professor at Haas School of Business View Program
HR & People Management Human Potential and the Future of Employment By - Lynda Gratton, Co-chair of the World Economic Forum Council on Work, Wages and Job Creation, Professor of Management Practice View Program
Strategy ESG and Business Sustainability Strategy By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader View Program
Finance Financial Reporting and Analytics By - Dr. C.P. Gupta, Professor: Department of Finance and Business Economics, University of Delhi View Program
“With this policy, the government wants to position Karnataka as the destination of choice for futuristic data centres and to make the state an integral part of the global data centre ecosystem and digital supply chain”, EV Ramana Reddy, Additional Chief Secretary, IT/BT & Industries told ET.
The Cabinet has also decided to consider special incentives on a case-by-case basis for projects that are of strategic importance in nature and where investments exceed Rs 4000 crore.
State’s IT/BT director Meena Nagaraj said the policy incentives and concessions are available to both existing and proposed data centres. While those related to land are available only to investments outside of Bengaluru urban district, other concessions like electricity duty, concessional power tariff and green power tariff reimbursement are applicable everywhere.
The cost of concessions over the five-year policy period is estimated at about Rs 1467 crore.
The urban development department has helped policy formulation by tweaking a host of building by-laws and construction regulations to align them with the specific needs of data centre buildings.
The policy allows eight types of incentives and concessions such as exemption of stamp duty, land conversion fee, and electricity duty, concessional registration charges, concessional power tariff and green power tariff reimbursement.
Subscribe to The Economic Times Prime and read the ET ePaper online.
Subscribe to The Economic Times Prime and read the ET ePaper online.
Prime Exclusives Investment IdeasStock Report PlusePaperWealth Edition
'Will fire all bureaucrats engaged in censorship'
GST on online gaming spiked revenue 412% in six months
CJI warns advocate over demeanour in RG Kar case
Kolkata RG Kar case: CJI lambasts Mamata govt
GST Council Meeting: Press Conference by FM Sitharaman
People with skills sidelined in India: Rahul Gandhi
Students push for local control in Manipur
US to invest in expanding India's semiconductor industry
Educated Public is Key to Preventing AI Misuse: Prez, Microsoft India
PM Modi hugs Abu Dhabi Crown Prince on his first India visit
