Pranav Hotkar
Thiruvananthapuram, India - March 15, 2026 - Dubai-based data infrastructure developer Solstice Data has signed a memorandum of understanding (MoU) with the Government of Kerala to invest INR 52,600 crore (~USD 5.6 billion) in the development of an artificial-intelligence-focused data centre campus in the state’s northern region.
The agreement was signed with the Kerala Industrial Infrastructure Development Corporation (KINFRA) for a project planned at the KINFRA Industrial Park in Mattannur, located in the Kannur district. The proposed campus will focus on high-performance computing and AI-driven digital infrastructure, reflecting growing demand for large-scale compute capacity in India.
Under the MoU, Solstice Data plans to develop the facility across roughly 100 acres within the industrial park, which lies close to Kannur International Airport. The company intends to build a large-scale data centre designed to support artificial intelligence workloads, cloud computing services, and advanced data-processing operations.
Officials involved in the agreement said the investment will be implemented in phases over the next five to seven years, allowing the company to gradually expand computing capacity as demand grows. The campus is expected to incorporate infrastructure optimized for high-density servers typically required for AI model training and high-performance computing environments.
The MoU was formally exchanged between Raj Babu Thulaseedharan, India country head of Solstice Data, and Santhosh Koshy Thomas, managing director of KINFRA. The signing ceremony was attended by Kerala’s minister for industries, law, and coir, P. Rajeev, along with senior officials from the state’s industries department.
State authorities say the project represents a major step toward strengthening Kerala’s digital-infrastructure ecosystem while positioning the region to attract investments tied to artificial intelligence and advanced computing. If implemented at the proposed scale, the investment would rank among the largest technology infrastructure projects announced in the state.
According to information shared during the announcement, Solstice Data develops and operates AI-focused high-performance computing data centers and manages multiple facilities globally, including projects in North America and other international markets.
India’s data center industry has expanded rapidly in recent years as demand for cloud services, AI development, and digital economy infrastructure accelerates. Industry analysts say the growth of AI workloads is pushing operators to build larger campuses with significant power and land requirements, particularly in emerging technology hubs across the country.
Officials involved in the project say the proposed campus in Kannur could support new technology investment in northern Kerala while contributing to the broader expansion of India’s AI and cloud infrastructure landscape.
