For decades, Bengaluru has been widely regarded as India’s technology capital. However, the country’s digital economy is now expanding beyond traditional hubs. Across South India, a new generation of tier-2 cities is emerging as strong technology destinations, attracting investments in artificial intelligence (AI), global capability centres (GCCs), data centres and advanced manufacturing.
Cities such as Mangaluru, Coimbatore, Visakhapatnam, Kochi and Madurai are increasingly gaining attention as future technology corridors that could reshape India’s tech landscape by 2030.
Lower operational costs, expanding infrastructure and a growing pool of engineering talent are encouraging companies to explore these emerging destinations.
Mangaluru: Karnataka’s Emerging “Silicon Beach”
Mangaluru is rapidly building a reputation as a rising technology hub in Karnataka. Often referred to as the “Silicon Beach of India,” the coastal city is attracting investments across technology, manufacturing and innovation sectors.
Nearly 68% of the city’s population is of working age, and Mangaluru already contributes about 5.5% to Karnataka’s Gross State Domestic Product (GSDP).
A major development supporting this growth is the city’s first dedicated technology park, a project valued at around ₹135 crore spread across 3.5 acres. Once operational, the facility is expected to generate around 11,000 jobs.
Currently, more than 40 technology companies operate in Mangaluru, and nearly 8,000 new jobs have been created in the past two years. The city’s IT workforce is estimated to be between 25,000 and 26,000 professionals.
Additional investments are also strengthening the ecosystem, including:
A $250 million acquisition involving local tech firms
A ₹1,500-crore green manufacturing facility planned by MIR Group
A ₹70–75 crore innovation fund aimed at supporting startups and technology development
Coimbatore: A Growing Deep-Tech and Manufacturing Hub
Coimbatore is steadily evolving from a traditional manufacturing centre into a major deep-technology and engineering hub.
The Government of Tamil Nadu recently signed 158 investment agreements worth ₹43,844 crore for projects in the region. These initiatives are expected to generate more than one lakh jobs in the coming years.
The city is witnessing rapid expansion across sectors such as:
Electric vehicles (EVs)
Engineering research and development (ER&D)
Aerospace manufacturing
Electronics production
Artificial intelligence technologies
Technology parks such as SVB Tech Park and ELCOT SEZ already host global companies including Cognizant and ThoughtWorks.
Startup activity is also increasing. AI startup Aivar recently secured $4.6 million in funding, while Xlogic Labs attracted around $5 million for AI robotics development.
With significantly lower operational costs than larger cities like Chennai or Bengaluru, Coimbatore is becoming a preferred destination for expanding tech companies.
Visakhapatnam: A Rising Data Centre and AI Infrastructure Hub
Visakhapatnam—commonly known as Vizag—is positioning itself as one of India’s most important data centre and AI infrastructure hubs.
A major project planned in partnership with Sify Technologies involves an investment of ₹15,266 crore to develop a 500-megawatt data centre cluster. This would make it one of the largest data centre facilities on India’s eastern coast.
Additionally, technology investors are exploring plans for a $15 billion AI ecosystem, including research facilities, advanced computing infrastructure and data centres over the next five years.
The city is also attracting global capability centres in healthcare and life sciences, with companies such as Roche and Bayer expanding their operations.
These developments could generate thousands of high-skilled jobs while strengthening Andhra Pradesh’s technology ecosystem.
Kochi: India’s First AI Township in the Making
Kochi is planning an ambitious project that could redefine technology infrastructure in India.
The city is developing what could become India’s first integrated artificial intelligence township. The project will be built as part of Infopark Phase 3 across 300 acres, in collaboration with the Greater Cochin Development Authority.
The AI township will focus on:
Artificial intelligence research
Technology startups
Innovation ecosystems
Sustainable urban living
Once completed around 2030, the development is expected to generate approximately 200,000 direct jobs and 600,000 indirect employment opportunities, positioning Kochi as a major innovation hub in the region.
Madurai: Infrastructure Fueling a New Tech Destination
Madurai is also gaining momentum as a technology destination, supported by major infrastructure investments.
Recently, projects worth over ₹4,400 crore were launched to improve connectivity and economic development in the region.
Another significant initiative is a 12-storey IT park being developed by the Tamil Nadu Industrial Development Corporation. The facility, located at Mattuthavani, will cover 5.34 lakh square feet and involves an investment of around ₹717 crore.
The IT park is expected to create 5,500 to 6,000 jobs, helping establish Madurai as an emerging technology and services hub.
Why Tier-2 Cities Are Gaining Momentum
The rise of these cities highlights a broader transformation in India’s technology ecosystem. Companies are increasingly expanding into tier-2 cities due to several advantages:
30–50% lower operational costs compared with major metro hubs
Availability of skilled engineering graduates
Improved infrastructure and connectivity
Better quality of life for employees
Infrastructure projects such as the Bengaluru–Mangaluru Expressway and proactive state technology policies are also encouraging decentralised growth.
If current trends continue, these emerging cities could play a critical role in India’s technology expansion by 2030, spreading innovation, jobs and investment beyond the country’s traditional tech capitals.
