Collective effort between State, Centre brought Google to Andhra Pradesh: Nara Lokesh

Andhra Pradesh IT and HRD Minister Nara Lokesh said the arrival of Google’s AI Data Centre in Visakhapatnam was the result of a collective effort between the State and Union Governments. Describing it as a proud moment for every citizen, he said the milestone marks a major leap toward making Andhra Pradesh India’s next technology powerhouse.

Addressing a press conference on Wednesday (October 15, 2025), Mr. Lokesh revealed that the State had made several legislative amendments to facilitate this mega investment, while the Centre was actively considering tax incentives for investors.

Leaders welcome Google’s ₹87,520-crore AI hub in Visakhapatnam as boost to India’s digital growth

“The Centre is working on it and will announce the details soon. The State has offered incentives similar to those given to Kia Motors and other investors, amounting to nearly 7% of the total investment,” he explained, adding that the exact figures will emerge as the project progresses.

Within just 17 months, Andhra Pradesh has become the “most investment-ready State” under the “double-engine, bullet-train” leadership of Prime Minister Narendra Modi and Chief Minister N. Chandrababu Naidu, he said. “Some tried to dissuade Google, just as they once discouraged Singapore investors. But Andhra Pradesh has risen above negativity. This is not just Andhra’s success, it is India’s pride,” he remarked. “The State has already received investment commitments worth $125 billion, and focus is now on speedy implementation,” he added.

Recalling the early stages of the deal, Mr. Lokesh said, “When Google executives first visited Visakhapatnam in September 2024, we identified potential sites. Later, during meetings in the U.S., they sought national-level policy changes. Mr. Naidu, Union Finance Minister Nirmala Sitharaman, and Union IT and Railways Minister Ashwini Vaishnaw worked closely with the Prime Minister to make those amendments possible.”

Responding to questions, Mr. Lokesh confirmed that several other States had competed for the project but failed to match Andhra’s investor-friendly approach. “After assessing multiple global destinations, Google chose Andhra for its unmatched speed of doing business and sustained government support. Just as Microsoft transformed Hyderabad, Google will transform Visakhapatnam. What took Hyderabad three decades, Visakhapatnam will achieve in ten,” he said, outlining the government’s vision for a $1 trillion economy.

Turning to the energy sector, Mr. Lokesh said inefficiency under the previous government caused a steep rise in power tariffs. “They scrapped a 1,000 MW thermal project in Visakhapatnam, forcing the State to buy power at ₹18 per unit. Now, all plants are operating at full capacity, and purchases have dropped to just 10% of earlier levels,” he stated.

On the issue of “true-up” charges, he said, “We are working to prevent them. Our ‘True Down’ policy ensures transparency and efficiency in the power sector.” He reiterated that under Chief Minister Naidu’s leadership, the government remains committed to balanced regional development under the principle of “One State, One Capital, and Decentralised Growth.”