Two Singapore-backed data centre players signal bigger bets on Karnataka, just days after the state approved a new policy targeting 1 GW of capacity by 2031.
Karnataka’s push to become India’s leading data centre destination got a fresh boost from Singapore this week. During an investment visit to the city-state, Large and Medium Industries Minister MB Patil held talks with two of Asia’s biggest digital infrastructure investors, CapitaLand Investment and ST Telemedia Global Data Centres (STT GDC), both of which indicated plans to grow their footprint in the state.
What CapitaLand is planning
According to Patil, CapitaLand Investment, a global real asset manager, is keen to expand its data centre capacity in Karnataka, in addition to the 42 MW data centre it is developing at International Tech Park Bangalore in Bengaluru, with an investment of approximately Rs 2,000 crore. The Rs 2,000 crore figure relates to the existing ITPB project; no capacity or investment figure for the proposed expansion has been disclosed yet.
The Whitefield facility is a sizeable build. Industry listings describe it as one data centre building with 12 data halls, each offering 2.0 MW to 2.5 MW of IT power, with capacity for around 4,500 racks. The site will include high-efficiency chillers with water economisation, intelligent energy and infrastructure management systems, and solar panels.
The location is strategic. ITPB was one of India’s first integrated IT parks, spread across 69 acres and home to several multinational tenants, which gives CapitaLand ready access to enterprise customers in Bengaluru’s eastern tech corridor.
STT GDC’s 100 MW Devanahalli campus
CapitaLand was not the only Singaporean firm at the table. Patil said STT GDC has expressed interest in further expanding its presence in the state. The company operates 34 data centres across 10 cities with more than 613 MW of IT capacity, including three facilities in Bengaluru, and is investing approximately Rs 5,000 crore to develop a 100 MW data centre campus on KIADB land in Devanahalli.
Devanahalli, near Kempegowda International Airport, has emerged as a key growth zone for large-format infrastructure in north Bengaluru.
Beyond data centres: the wider Singapore connection
The data centre conversations were part of a broader economic outreach. Patil said there was considerable scope for deeper Karnataka–Singapore collaboration in aerospace and defence, semiconductors, aviation MRO and other advanced industries, which he discussed with Gan Siow Huang, Singapore’s Minister of State for Trade and Industry.
Follow-up will run through the Invest Karnataka Forum and the Singapore Enterprise Centre in Bengaluru, and the Singapore government has been invited to join as a partner country at the Global Investor Meet 2027. The delegation also met TVS Motor Company, with the state encouraging it to increase investments in manufacturing, electric mobility, advanced automotive technologies and R&D.
Why the timing matters: Karnataka’s new data centre policy
The Singapore talks come just days after a major policy move at home. The state cabinet approved the Sustainable Data Centre Policy 2026-31, targeting a 10-12% share of India’s data centre capacity and 1 GW of cumulative capacity by 2031, with Rs 1,300.45 crore earmarked for implementation.
That is a significant jump from where the state stands today. Earlier reporting put Karnataka’s installed data centre capacity at about 400 MW, and officials estimate each megawatt requires roughly Rs 60 crore of investment, meaning a 1,000 MW expansion could draw nearly Rs 60,000 crore over five years.
The policy is also designed to spread growth across the state. An earlier plan envisaged data centre parks with a combined 1,000 MW across Bengaluru, Mysuru and Mangaluru, including a proposed 500 MW park near Hoskote powered by solar energy from Pavagada, and about 350 acres identified in Mangaluru’s Baikampady Industrial Area.
IT Minister Priyank Kharge framed the goal as quality over quantity, saying the aim is to build the right capacity, in the right locations and with the right infrastructure.
The national picture
Karnataka is competing in a fast-growing market. The Union government said in August that India’s data centre capacity had grown from 375 MW in 2020 to about 1,575 MW, driven partly by demand from AI and high-performance computing. Demand drivers include AI, cloud computing, 5G, IoT, fintech and global capability centres, all sectors where Bengaluru is already strong.
The challenges ahead
Power and water remain the biggest constraints. Officials have acknowledged that Karnataka is the second-most arid state in the country, which is why the government plans to promote the use of treated wastewater for data centres around Bengaluru. Analysts also note that successful execution will depend on whether high-capacity power grids and stable connectivity can keep pace with the 1 GW target.
What to watch
The key question is whether CapitaLand’s interest turns into a formal commitment with a specific capacity and investment figure. With STT GDC’s Rs 5,000 crore Devanahalli project already underway, a new state policy in place, and Singapore invited to the Global Investor Meet 2027, the next few months could show how much of this momentum converts into signed deals on the ground.