Karnataka is set to explore a Rs 83,480 crore investment proposal from Luxembourg-based Innovation Platform Capital (iPC) to build an integrated green hydrogen, renewable energy and hyperscale data-centre hub between Bengaluru and Tumakuru.

Planned in three phases, the project would include 2,250 MW of data-centre IT capacity and 1,000 MW of green hydrogen capacity, adding Karnataka’s position as a hub for clean energy and digital infrastructure.

The proposal was discussed between Karnataka Industries Minister MB Patil and a senior iPC delegation led by Gursharan Singh Kundan. The project is still at the proposal stage and will require approvals, land-related decisions and other statutory clearances before implementation.

3 phase Bengaluru–Tumakuru platform

According to Minister MB Patil, iPC plans to build an integrated platform combining digital infrastructure, renewable energy and green hydrogen production.

The project is planned in three phases and will have:

  • A total hyperscale data-centre IT load of 2,250 MW.
  • Green hydrogen capacity of 1,000 MW.
  • Data-centre and power infrastructure spread across the Bengaluru–Tumakuru region.
  • A proposed overall investment of Rs 83,480 crore.

The investment is expected to support Karnataka’s ambition to expand its technology infrastructure beyond Bengaluru and develop Tumakuru as an important industrial and digital hub.

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First phase to cost Rs 17,114 crore

The company’s current proposal focuses on the first phase, which involves a gross investment of Rs 17,114 crore.

This phase will include:

  • 400 MW of data-centre capacity.
  • Two data-centre campuses, each with a capacity of 200 MW.
  • A 500 MW green hydrogen and power complex.
  • Around 1,000 acres of land.

The proposed data centres are expected to serve the growing demand for cloud computing, artificial intelligence, digital services and other high-capacity technology operations. The green hydrogen and power complex is intended to provide clean energy support for the wider platform.

Land plan and safety buffers

iPC has sought approximately 1,000 acres of land for the first phase. Under the proposed land-use plan, around 400 acres would be used for the data-centre campuses. Another 400 acres would be allocated to the green power and hydrogen complex. The remaining 200 acres would be kept as safety and environmental buffers. The minister’s office said this area would include a separation zone around the hydrogen facility.

“The remaining 200 acres would be earmarked for safety and environmental buffers, including the proposed separation zone for the hydrogen facility,” the statement said.

The buffer zone is particularly important because green hydrogen production and storage require careful safety planning, adequate separation distances and environmental safeguards.

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Water recycling at the project

The project is expected to require around 13 million litres of water per day, or 13 MLD. The company proposes to meet most of this requirement through treated industrial wastewater or treated effluent from Common Effluent Treatment Plants, also known as CETPs. This approach is intended to reduce pressure on fresh-water sources.

iPC has also proposed recycling between 80% and 85% of the water used by the facility. Limited borewell water would be kept only as a backup, if required. The proposed water-reuse system is significant because large data centres generally require substantial water for cooling and other operations. Karnataka’s government has been emphasising water efficiency and more sustainable infrastructure as it seeks to attract additional data-centre capacity.

Ministers highlight green infrastructure

MB Patil said the investment could bring new technologies, create future-ready industries and generate employment opportunities in the State.

In a post on X, he said, “Rs 83,480 Cr Investment Proposal from Luxembourg, Europe, for Karnataka.” He added, “Held a productive meeting with Gursh S Kundan, Founder & Chairman of Luxembourg-based Innovation Platform Capital (IPC), and his team.”

Describing the proposal, Patil said, “IPC has proposed investing Rs 83,480 crore in Karnataka across three phases, with a focus on digital infrastructure, renewable energy and green hydrogen.”

The minister said the proposal was more than a capital investment. According to him, it could help bring new technologies to Karnataka, build future-ready industries, create employment and accelerate the state’s shift towards a green and digital economy.

He also said the interest shown by international investors reflected the confidence Karnataka had built through its Invest Karnataka initiative. The state, he added, would continue working to strengthen its position as a global destination for technology, clean energy and sustainable industrial growth.

Focus on Tumakuru

Karnataka Information Technology and Biotechnology Minister Priyank Kharge also referred to the proposal in a post on X. He said he had met the iPC team and noted that the company had proposed setting up an integrated green data centre in Tumakuru.

Kharge said, “Karnataka is targeting an additional 1 GW of data-centre capacity, with a strong focus on energy efficiency, water efficiency and greener operating practices.” He added, “The proposal aligns with our broader plan to expand Karnataka’s data-centre footprint beyond Bengaluru and build more sustainable digital infrastructure.”

Tumakuru is being developed as a major industrial destination outside Bengaluru. The proposed iPC project could support this plan by bringing together large-scale digital infrastructure, renewable power generation and green hydrogen production in the region.

The Rs 83,480-crore figure represents iPC’s proposed investment across the three planned phases. The first phase is estimated at Rs 17,114 crore, but the project is not yet an approved or operational investment.

Further steps are expected to include land assessment, environmental and safety reviews, water-supply planning, power arrangements and statutory clearances. Any final agreement between the company and the Karnataka government would also determine the project’s implementation schedule and investment commitments.

If approved and executed as proposed, the project could become one of Karnataka’s largest planned investments in digital infrastructure and clean energy. It would also link the state’s data-centre expansion with renewable power and green hydrogen, supporting Karnataka’s effort to build a more sustainable technology economy.