Mangaluru has emerged as one of India’s most cost-efficient and reliable coastal locations for data centres, according to the Mangaluru Data Centre Feasibility Study 2025 released by the Karnataka Digital Economy Mission, the Silicon Beach Program (SBP), and Deloitte India.
The study highlights that Mangaluru offers up to 4–5 times cheaper land costs than Mumbai, lower power tariffs than most major metros, and 98.56% power reliability, making it a strong candidate for hosting cloud, AI, and other critical digital infrastructure. It also outlines a roadmap to build a 1 GW coastal data centre cluster over the next decade.
The assessment positions Mangaluru as a strategic support hub to Bengaluru under a hub-and-spoke model, helping distribute computing workloads, improve resilience, and support disaster recovery, as India scales towards 10–12 GW of national data centre capacity by 2030.
Strong Cost Advantage and Reliable Infrastructure
According to the study, land leasing costs in Mangaluru stand at ₹7.69 per sq ft per month, offering a significant cost advantage over Mumbai and Chennai. Power tariffs range between ₹5.95–6.60 per kWh, making large-scale operations more affordable.
These factors, combined with assured water availability and a stable electricity grid, can significantly reduce operating costs for data centre developers and help shorten the time needed to recover investments.
The report noted that demand for data centres is being driven by steady growth in mobile usage, digital services, financial technology, and AI adoption—rather than short-term market cycles.
The study also highlights $240 million worth of GCC acquisitions and the rise of smaller enterprise centres in sectors such as BFSI, regtech, and fintech, strengthening long-term demand for regional data processing capacity.
Mangaluru now ranks among India’s top eight emerging GCC hotspots, the report noted.
Infrastructure, Talent, and Connectivity
Mangaluru benefits from 36 million sq ft of contiguous land near New Mangalore Port, additional large land parcels in Balkunje and MSEZ, and reduced climate and seismic risk due to its elevation and location in Seismic Zone III.
Karnataka’s grid currently reports zero unmet peak demand, with over 2,600 MW of renewable energy being added.
The region also has a strong talent base, with 25,000 IT professionals and over 20,000 STEM graduates annually, supported by improving air, road, and port connectivity.
Rohith Bhat, Lead Industry Anchor, Mangaluru Cluster, KDEM, and founding member, SBP, stated in the report, “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.”
In the short term, the study recommends attracting 10–50 MW edge data centres, reaching 200 MW across 4–5 operators within three years, supported by land subsidies and capital assistance.
Over the longer term, it calls for faster approvals, a single coordinating agency, digital land and utility access, and evaluating the feasibility of a cable landing station.
The post Mangaluru’s Cost Advantages Make it an Ideal Data Centre Hub: KDEM–SBP–Deloitte Study appeared first on Analytics India Magazine.
