Long known as Karnataka’s key coastal city and commercial gateway, Mangaluru is now positioning itself as an important part of the state’s strategy to expand technology growth beyond Bengaluru. Industry leaders, policymakers and investors increasingly view the city as a viable destination for IT services, digital infrastructure and global business operations.
The shift comes amid rising demand for cost-efficient technology hubs that can support the next phase of digital transformation, cloud computing and artificial intelligence adoption. With lower operational costs, improving infrastructure and a growing talent base, Mangaluru is attracting companies looking to establish new technology and support centres.
Karnataka has placed GCC expansion at the centre of its economic strategy. The state government recently outlined plans to establish 500 new GCCs by 2029, a move expected to create approximately 3.5 lakh jobs and generate significant economic output. As part of this initiative, an IT park is planned in Mangaluru to attract global companies and strengthen the city’s position within the technology ecosystem.
Industry reports indicate that Mangaluru is already gaining momentum. Studies show the city has attracted around $240 million in GCC and technology-related investments over the past four years, highlighting growing confidence among investors and enterprises.
Technology stakeholders point to several advantages driving the city’s rise. Unlike many emerging tech hubs, Mangaluru benefits from multimodal connectivity through road, rail, air and sea transport. The city also offers comparatively lower real estate and infrastructure costs than larger metropolitan markets, making it attractive for companies seeking operational efficiency.
Another area generating interest is digital infrastructure. Multiple studies have identified Mangaluru as one of India’s most cost-efficient coastal destinations for data centre development. Competitive land costs, favourable energy economics and strong connectivity have strengthened its case as a future data infrastructure hub supporting AI and cloud computing workloads.
The Karnataka Digital Economy Mission and industry partners have also highlighted the city’s potential to support a large-scale data centre ecosystem. Reports suggest Mangaluru could play a significant role in Karnataka’s distributed digital infrastructure strategy, complementing Bengaluru through a hub-and-spoke model designed to support future demand for AI-ready computing capacity.
The city’s startup ecosystem is also expanding. Industry estimates indicate that more than 400 startups are already operating across sectors including fintech, cloud computing, analytics and logistics technology. Support from academic institutions, local entrepreneurs and government-backed initiatives has contributed to a growing innovation culture.
Mangaluru’s talent pipeline remains another key factor in its growth story. The city is home to several educational institutions that continue supplying skilled professionals to India’s technology sector. Companies exploring GCC expansion increasingly view access to talent as a critical advantage when selecting locations outside major metropolitan centres.
Industry experts believe the rise of tier-two technology hubs is reshaping India’s digital economy. Instead of concentrating all operations in a few large cities, companies are distributing investments across multiple locations to improve scalability, reduce costs and access regional talent pools.
For Mangaluru, this trend presents a significant opportunity. With planned IT parks, increasing GCC interest, expanding startup activity and growing data centre ambitions, the city is positioning itself as an important destination within India’s evolving technology landscape.
While Bengaluru remains the state’s primary technology hub, Mangaluru’s growing ecosystem suggests that Karnataka’s next chapter of digital growth may increasingly be written along its coastline.