Karnataka to Appoint Consultant for Data Centre Development Initiative, Mysuru Targeted as Secondary IT Hub

Karnataka Seeks Consultant to Boost Data Centre Strategy and IT Hubs

The Karnataka Innovation and Technology Society (KITS) has announced plans to select a consultant to help the state sharpen its data centre strategy, strengthen emerging technology ecosystems, and prepare a roadmap to position Mysuru as Karnataka's second major IT hub.

As Karnataka looks to consolidate its position as India's leading technology destination amid rising global demand for data centres, AI infrastructure, and cybersecurity operations, the move comes at a crucial time. The Request for Proposal (RFP) floated by KITS states that the selected consultant will work with the Department of Electronics, IT, Biotechnology, and Science & Technology (ITBT) to identify policy gaps, recommend strategic interventions, and support investment outreach programmes aimed at attracting global companies to Karnataka.

According to the RFP, the consultant will be responsible for designing interventions across major areas such as talent availability, infrastructure, real estate, connectivity, policy support, and ease of doing business. This includes engaging with domestic and international companies to understand location preferences, benchmarking Karnataka against competing destinations, and creating customised investment pitches for prospective investors.

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Key Areas of Focus

The state government is seeking to capitalise on growing investments in digital infrastructure and artificial intelligence as hyperscalers and global technology firms expand their India footprint. The consultant will be responsible for facilitating global roadshows across regions such as the US, Europe, Japan, Korea, and the UK to attract investments into Karnataka's data centre and cybersecurity ecosystem.

The engagement will also focus on the development of a strategic roadmap to position Mysuru as Karnataka's second major IT city, in line with the state Budget 2026-27 announcement. The consultant will identify interventions needed to attract companies and data centres to Mysuru while leveraging the city's existing ecosystem of more than 100 companies and over 30,000 technology professionals.

Comparison of Karnataka's IT Hubs

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The consultant will also support the revamp of Karnataka's Data Centre Policy 2022-2027 and assist in operationalising incentive mechanisms under the revised framework. This includes drafting amendments, preparing operational guidelines, digitising incentive application systems, and designing standard operating procedures for evaluating proposals.

Industry Response

Industry executives said the move reflects Karnataka's attempt to reduce pressure on Bengaluru while expanding technology-led growth into tier-2 cities. "Mysuru already has a strong talent base and lower operating costs compared to Bengaluru. With the right policy push and infrastructure support, it can emerge as a strong alternative destination for technology investments," said a senior executive at a Bengaluru-based technology industry body.

The selected firm will support ongoing AI and emerging technology programmes, coordinate with Centres of Excellence (CoEs), and facilitate industry collaborations. KITS said the consultant would monitor 10 Centres of Excellence under the IT department, including those focused on AI, cybersecurity, quantum research, and advanced wireless technologies.

The consultant will also help Karnataka identify high-growth emerging technology sectors such as artificial intelligence and prepare long-term action plans for the next five years. The firm will create a responsible AI framework aligned with global standards around ethics, transparency, accountability, and data privacy.