December 29, 2025
Yogesh Sharma- Mangaluru is becoming an increasingly attractive location for data center development in India due to its cost-effectiveness and strategic advantages. As companies look for alternatives to expensive metropolitan cities, the coastal city in Karnataka is seen as a viable option for hosting large-scale digital infrastructure. This shift is driven by the growing demand for cloud services, artificial intelligence, data localization, and enterprise computing throughout the country.
The Karnataka Digital Economy Mission (KDEM), which is the state government’s main agency for promoting digital growth in Karnataka, has highlighted Mangaluru’s emergence as a data centre hub. A detailed feasibility study conducted in partnership with Deloitte and backed by the Silicon Beach Program revealed that Mangaluru has a favorable cost structure, a reliable power supply, and access to suitable land parcels. These factors make the city attractive to both domestic and global data centre operators.
One of the key advantages for Mangaluru is its lower operational costs compared to established markets like Mumbai, Chennai, and Bengaluru. Competitive land leasing rates, affordable electricity tariffs, and a power grid reliability of over 98.5% significantly lower long-term expenses for operators, while ensuring stable operations for mission-critical workloads. These benefits are becoming increasingly important as data centers expand to support cloud platforms and AI-driven services.
Mangaluru’s coastal location enhances its potential for future submarine cable connectivity, which can improve international data flow, reduce latency, and increase network redundancy. With ongoing improvements in road, rail, port, and airport connectivity, the city is well-positioned to support hyperscale data centers, as well as disaster recovery and backup facilities.and backup facilities.
According to KDEM, Mangaluru closely aligns with Karnataka’s “Beyond Bengaluru” strategy, which aims to decentralize digital infrastructure and promote tier-2 cities as new centers for technology growth. With ongoing policy support, infrastructure development, and interest from various industries, Mangaluru is expected to play an increasingly important role in India’s expanding digital economy and the future-ready data center ecosystem.
With lower costs, reliable infrastructure and a strategic coastal edge, Mangaluru is positioning itself as a quiet but powerful backbone of India’s digital future.
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