With reference to the Karnataka Sustainable Data Centre Policy, consider the following statements: 1. The policy provides a ₹30 crore incentive for low Power Usage Effectiveness (PUE). 2. Water charge reimbursements are capped at ₹10 lakh annually. 3. The policy aims to establish a 1GW capacity by 2031. Which of the statements given above is/are correct?

Karnataka approves Sustainable Data Centre Policy to reach 1GW capacity by 2031

GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims + Mains· 2 October 2026

Infrastructure and environmental sustainability: a GS3 case study on resource management in the digital economy.

Why in news

The Karnataka government approved the Sustainable Data Centre Policy 2026–2031 to establish a 1GW capacity by 2031 while offering incentives for energy and water efficiency.

Background

The policy provides a ₹20 crore incentive for low Power Usage Effectiveness (PUE) and water charge reimbursements up to ₹30 lakh annually for efficient Water Usage Effectiveness (WUE). It aims for a 1GW capacity by 2031 in Karnataka.

Facts for Prelims

FactTarget capacity: 1GW by 2031
FactPUE incentive: ₹20 crore for low Power Usage Effectiveness
FactWUE reimbursement: Up to ₹30 lakh annually for efficient Water Usage Effectiveness
PlaceKarnataka government approved the Sustainable Data Centre Policy 2026–2031

Prelims practice question

With reference to the Karnataka Sustainable Data Centre Policy, consider the following statements:

The policy provides a ₹30 crore incentive for low Power Usage Effectiveness (PUE).
Water charge reimbursements are capped at ₹10 lakh annually.
The policy aims to establish a 1GW capacity by 2031.

Which of the statements given above is/are correct?

(a)3 only
(b)1 and 2 only
(c)2 and 3 only
(d)1, 2 and 3

Show answer

Answer: (a) 3 only — Statement 3 is correct. Statement 1 is incorrect: The note states a ₹20 crore incentive for low PUE. Statement 2 is incorrect: The note states reimbursements are up to ₹30 lakh annually.

For Mains

Q. Discuss the environmental and infrastructural challenges of establishing large-scale data centres in India and suggest measures to ensure sustainable growth.

Dimensions to cover in your answer

Resource competition: Conflict between industrial water requirements and local community water security
Regulatory oversight: Need for transparent monitoring of local water impacts and heat dissipation
Energy-Water Nexus: Balancing high-density computing power with renewable energy and water conservation goals

Keywords: Sustainable Infrastructure · Power Usage Effectiveness · Water Usage Effectiveness · Digital Infrastructure · Resource Management

Read the full news →Report a mistake in this note Source: The Hindu ↗Also: GS3 · IT, AI, semiconductors & computing

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