Karnataka looking to develop ESDM sector, with focus on coastal areas

Bengaluru: To support the growth of the ESDM (Electronics, System Design and Manufacturing) sector, AI data centre clusters of varying capacities will be developed at multiple locations across the State, including the coastal district of Dakshina Kannada, Minister for Large and Medium Industries M. B. Patil recently said.

He added that a meeting with the Ministers for Energy and IT will soon be convened in this regard.

With a focus on long-term industrial growth, the Minister chaired meetings of the ESDM and Core Manufacturing Vision Groups at Khanija Bhavan.

Speaking later, he said there were three categories of data centres, and a conducive ecosystem would be created to establish hyperscale data centres with capacities exceeding 500 MW.

In addition, data centres with capacities ranging from 20 MW to 200 MW are proposed to be set up in Tier-2 and Tier-3 cities, and efforts are under way to attract investments for the same.

He said the government was keen on developing the coastal region into a 500 MW AI data hub. Officials had been directed to conduct a feasibility study to examine the establishment of a cable landing station in Mangaluru, he added.

“Several globally reputed companies in the ESDM sector have expressed interest in investing between ₹25,000 crore and ₹30,000 crore in the coming years. Karnataka will take proactive steps to secure a substantial share of this investment. The State will also develop infrastructure for component assembly, testing facilities, packaging and specialised warehousing,” Patil said.

Referring to global best practices, Patil said that in Arizona, students receive comprehensive industry-oriented training at an early stage. “Industrialists have recommended establishing similar high-quality training centres in Tier-3 and Tier-4 cities across Karnataka. The government is also exploring the possibility of enabling leading global universities in semiconductor-focused cities to establish campuses in the State,” he said.

The Minister emphasised the need to study how data centres and specialised universities functioned in the United States. In Malaysia, clusters of data centres with capacities ranging from 50 MW to 200 MW have been established over the past five years.

The idea of sending a high-level State delegation to both countries is under consideration, he added.

Turning to the core manufacturing sector, Patil said the availability of iron ore plays a decisive role.

However, restrictions on its utilisation within the State require review. A suitable policy framework will be formulated, and the government will examine the matter positively, he assured.

Patil also noted that automotive manufacturers currently import specialised grades of steel for their requirements. “Industry leaders have highlighted the need for support to produce such steel domestically, and the government will review this at the earliest,” he noted.