Mangaluru Recognized as Affordable Hub for Data Centres by Deloitte Study

The Karnataka Digital Economy Mission (KDEM) and the Silicon Beach Program (SBP), in collaboration with Deloitte India, have unveiled the findings of the Mangaluru Data Centre Feasibility Study 2025. This study assesses Mangaluru’s potential to enhance India’s digital infrastructure for cloud computing, artificial intelligence, and essential workloads.

The assessment highlights Mangaluru as a highly cost-effective and scalable coastal destination for data centre development. With land leasing prices at Rs 7.69 per square foot per month, Mangaluru offers a significant cost advantage—up to 4–5 times lower than Mumbai and up to 95 percent lower than Chennai, depending on the specific zone and asset class.

Competitive Energy Tariffs and Infrastructure

In addition to affordable land, Mangaluru boasts energy tariffs ranging from Rs 5.95 to 6.60 per kilowatt-hour. These rates are considerably lower than Chennai’s Rs 7.50 per kilowatt-hour and are competitive against major markets across India. The region’s high grid reliability and guaranteed industrial water availability further establish a robust foundation for advanced computing infrastructure.

As India aims for a national data centre capacity of 10–12 GW by 2030, Mangaluru is strategically positioned as a vital “spoke” in a hub-and-spoke model led by Bengaluru. This approach is expected to facilitate decentralised computing and low-latency workloads, as well as enhance disaster recovery and business continuity capabilities.

Statements from Industry Leaders

During the announcement of the study’s findings, B V Naidu, Chairman of KDEM, emphasized the importance of infrastructure in achieving digital leadership. He stated, “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.”

Rohith Bhat, Lead Industry Anchor for the Mangaluru Cluster at KDEM and a Founding Member of the Silicon Beach Program, added, “Mangaluru has quietly assembled all the fundamentals required for a high-capacity, future-ready data centre ecosystem, from coastal geography and grid stability to talent depth and multimodal connectivity. With KDEM’s leadership, the Silicon Beach Program’s ecosystem development, and Deloitte’s insights, this study charts a clear roadmap for unlocking 1 GW of sustainable, AI-ready data centre capacity.”

This initiative aligns with Karnataka’s broader strategy for growth beyond Bengaluru, focusing on the development of future-ready technology clusters throughout the state.