Mangaluru: The Karnataka Digital Economy Mission (KDEM) and the Silicon Beach Programme (SBP), in partnership with Deloitte India, have announced the release of the Mangaluru Data Centre Feasibility Study 2025, a comprehensive strategic assessment evaluating Mangaluru’s potential role in strengthening India’s digital backbone for cloud computing, artificial intelligence (AI), and mission-critical workloads.

The study identifies Mangaluru as one of India’s most cost-efficient and scalable coastal destinations for data centre development, positioning the city as a key enabler of the country’s rapidly expanding digital infrastructure. The assessment was commissioned to analyse economic viability, infrastructure readiness, energy availability, and long-term scalability in the context of India’s growing demand for data centres.

Significant cost advantage over major metros

According to the study, Mangaluru offers a strong cost advantage compared to established data centre hubs such as Mumbai and Chennai. Land leasing costs in the region are estimated at Rs 7.7 per sq ft per month, translating into a four to five times cost advantage over Mumbai and up to a 95% cost advantage over Chennai, depending on the zone and asset class.

In addition to land affordability, Mangaluru also benefits from competitive power tariffs ranging between Rs 6 and Rs 6.6 per kWh, which are lower than Chennai’s average tariff of Rs 7.5 per kWh and outperform most other major data centre markets in the country. These factors collectively position Mangaluru as a highly attractive destination for hyperscalers and enterprise data centre operators seeking long-term cost efficiency.

Strategic role in India’s data centre growth

As India advances towards a projected 10–12 GW of national data centre capacity by 2030, the study positions Mangaluru as a strategic “spoke” within a Bengaluru-led hub-and-spoke architecture. Under this model, Bengaluru continues to serve as the country’s primary digital nerve centre, while Mangaluru supports it as a resilient coastal node capable of hosting mission-critical and overflow workloads.

The study notes that Karnataka currently contributes approximately 8% of India’s total data centre capacity, and Mangaluru’s inclusion as a coastal data centre cluster would strengthen the state’s distributed infrastructure strategy while reducing concentration risk.

Leadership perspective from KDEM

Announcing the findings, BV Naidu, Chairman of KDEM, emphasised the importance of infrastructure in driving digital leadership. He said the study confirms Mangaluru’s readiness to support the next phase of India’s digital transformation.

“Infrastructure is the backbone of digital leadership. This study confirms that Mangaluru offers the right combination of capability, control, and cost to support India’s next decade of AI- and cloud-led growth. With industry-leading economics, a resilient grid, and a deep talent base, Mangaluru is primed to host mission-critical workloads while complementing Bengaluru’s position as India’s digital nerve centre,” he said.

Roadmap for 1 GW data centre capacity

Rohith Bhat, Lead Industry Anchor for the Mangaluru cluster at KDEM and founding member of the Silicon Beach Programme, said the city has quietly built all the essential fundamentals required for a future-ready data centre ecosystem.

“Mangaluru has assembled all the core ingredients, from its coastal geography and grid stability to talent depth and multimodal connectivity. With KDEM’s leadership, the Silicon Beach Programme’s ecosystem development, and Deloitte’s insights, this study charts a clear roadmap for unlocking 1 GW of sustainable, AI-ready data centre capacity,” he said.

He added that the roadmap aligns closely with Karnataka’s Beyond Bengaluru growth strategy, which aims to create multiple high-impact technology clusters across the state.

Emerging GCC and demand centre

The study also highlights Mangaluru’s growing prominence as one of India’s top eight emerging Global Capability Centre (GCC) hotspots, reinforcing its role as a stable demand centre for regional and mission-critical digital workloads. The presence of educational institutions, a skilled workforce, and improving connectivity further strengthens the city’s case as a long-term digital infrastructure destination.

Conclusion

With strong cost economics, competitive energy pricing, coastal advantages, and policy-backed ecosystem development, the Mangaluru Data Centre Feasibility Study 2025 positions the city as a strategic pillar in India’s digital future. As demand for AI, cloud, and data-driven services accelerates, Mangaluru is poised to play a critical supporting role in Karnataka’s and India’s evolving digital infrastructure landscape.