With reference to the Karnataka Sustainable Data Centre Policy, consider the following statements: 1. The policy provides a ₹30 crore incentive for low Power Usage Effectiveness (PUE). 2. Water charge reimbursements are capped at ₹10 lakh annually. 3. The policy aims to establish a 1GW capacity by 2031. Which of the statements given above is/are correct?

Karnataka approves Sustainable Data Centre Policy to reach 1GW capacity by 2031

GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims + Mains· 2 October 2026

Infrastructure and environmental sustainability: a GS3 case study on resource management in the digital economy.

Why in news

The Karnataka government approved the Sustainable Data Centre Policy 2026–2031 to establish a 1GW capacity by 2031 while offering incentives for energy and water efficiency.

Background

The policy provides a ₹20 crore incentive for low Power Usage Effectiveness (PUE) and water charge reimbursements up to ₹30 lakh annually for efficient Water Usage Effectiveness (WUE). It aims to reach a 1GW capacity by 2031.

Facts for Prelims

FactTarget capacity: 1GW by 2031
FactPUE incentive: ₹20 crore for low Power Usage Effectiveness
FactWUE reimbursement: Up to ₹30 lakh annually for efficient Water Usage Effectiveness
PlaceKarnataka government approved the policy

Prelims practice question

With reference to the Karnataka Sustainable Data Centre Policy, consider the following statements:

The policy provides a ₹30 crore incentive for low Power Usage Effectiveness (PUE).
Water charge reimbursements are capped at ₹10 lakh annually.
The policy aims to establish a 1GW capacity by 2031.

Which of the statements given above is/are correct?

(a)3 only
(b)1 and 2 only
(c)2 and 3 only
(d)1, 2 and 3

Show answer

Answer: (a) 3 only — Statement 3 is correct. Statement 1 is incorrect: The note states a ₹20 crore incentive for low PUE. Statement 2 is incorrect: The note states reimbursements are up to ₹30 lakh annually.

For Mains

Q. Discuss the challenges of balancing rapid digital infrastructure expansion with environmental sustainability in India's growing data centre ecosystem.

Dimensions to cover in your answer

Resource competition: Conflict between industrial water requirements and local community water security
Regulatory oversight: Need for transparent monitoring of local water impacts and heat dissipation
Incentive alignment: Balancing fiscal subsidies with mandatory environmental compliance standards

Keywords: Sustainable Infrastructure · Data Centres · Power Usage Effectiveness · Water Usage Effectiveness · Digital Economy · Resource Management

Read the full news →Source: The Hindu ↗Also: GS3 · IT, AI, semiconductors & computing

More Economy notes

High forward premiums make hedging expensive for foreign investors as rupee hits 96.79 · 9 October 2026
Khambata defended Jane Street before tribunal over Sebi ex-parte order · 9 October 2026
RBI raises interest rates by 25 bps to combat inflation; shifts to ‘calibrated tightening’ · 9 October 2026
Infosys and Wipro ADRs fall after TCS reports Rs 13,884 crore net profit · 8 October 2026
Andhra Pradesh wins Leadership State award for ₹4 lakh crore renewable energy projects · 8 October 2026
GST Council scraps arrest powers and raises prosecution threshold to ₹5 crore · 8 October 2026

All Economy current affairs →

This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.