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Google's $15 Billion Visakhapatnam AI Hub Sets Off Andhra–Karnataka Fight Over Incentives

The deal has become a political test of governance, infrastructure and transparency across the two states.

Overview

  • Google and Andhra Pradesh have signed an MoU for a one‑gigawatt AI and data centre hub in Visakhapatnam, described as the company’s largest India investment.
  • Andhra IT minister Nara Lokesh credits a cluster-based industrial strategy and fast execution, branding the state a “double‑engine bullet train.”
  • Karnataka’s JD(S) and BJP blame the Congress government for losing the project, call it a major loss for Bengaluru, and press for a white paper on the outcome.
  • Karnataka deputy chief minister D. K. Shivakumar defends Bengaluru’s ecosystem and says Andhra offered concessions, as Lokesh counters with digs over infrastructure woes.
  • Impact and incentive claims vary widely, with some reports citing 30,000 jobs and ₹10,000 crore in annual revenue and others 1.88 lakh jobs and ₹48,000 crore, while allegations of large subsidies remain unconfirmed.