Karnataka is considering an Rs 83,480 crore investment proposal from Luxembourg-based Innovation Platform Capital (iPC) to develop an integrated green hydrogen, renewable energy and large-scale data centre hub between Bengaluru and Tumakuru, Financial Express reported.
The proposed project would be developed in three phases and include 2,250 MW of data centre capacity and 1,000 MW of green hydrogen capacity. The plan is aimed at strengthening Karnataka’s position in clean energy and digital infrastructure while expanding technology development beyond Bengaluru.
The proposal was discussed at a meeting between Karnataka Industries Minister MB Patil and an iPC delegation led by founder and chairman Gursharan Singh Kundan.
The project is currently only at the proposal stage. It will require government approvals, decisions on land allocation and other statutory clearances before work can begin.
First phase investment pegged at Rs 17,114 crore
The first phase of the proposed development involves an investment of Rs 17,114 crore.
It would include 400 MW of data centre capacity through two campuses, each capable of supporting 200 MW. The phase would also include a 500 MW green hydrogen and power complex and require about 1,000 acres of land.
The data centres are expected to meet growing demand for cloud computing, artificial intelligence and other digital services that require large computing capacity. The green hydrogen and power facility would provide clean energy for the wider development.
1,000 acres proposed for first phase
Of the 1,000 acres sought for the first phase, about 400 acres would be used for the two data centre campuses. Another 400 acres would be allocated to the green power and hydrogen complex.
The remaining 200 acres would be reserved for safety and environmental buffers, including a separation zone around the hydrogen facility.
Such separation is important because hydrogen production and storage require careful safety measures and adequate distance between facilities.
Project to rely largely on recycled water
The development is expected to need about 13 million litres of water a day. iPC plans to meet most of this requirement using treated industrial wastewater or treated effluent from Common Effluent Treatment Plants.
The company has also proposed recycling 80-85% of the water used at the facility. Borewell water would be used only as a backup if necessary.
The proposed water-reuse system is intended to reduce the project’s dependence on fresh water, particularly as large data centres require significant amounts of water for cooling and other operations.
Patil said the proposed investment could bring new technologies to Karnataka, support new industries and create employment opportunities.
“Rs 83,480 Cr Investment Proposal from Luxembourg, Europe, for Karnataka,” he said in a post on X after meeting Kundan and his team.
