Andhra Pradesh is celebrating a monumental achievement with the establishment of Google’s Artificial Intelligence (AI) Data Centre in Visakhapatnam, a feat attributed to the synergistic efforts of both the State and Union Governments. IT and HRD Minister Nara Lokesh hailed this development as a moment of immense pride for all citizens, signaling a significant leap towards positioning Andhra Pradesh as India’s next premier technology hub.
During a recent press conference held on Wednesday, October 15, 2025, Minister Lokesh elaborated on the extensive measures taken to secure this colossal investment. He disclosed that the State government implemented several crucial legislative amendments to smooth the path for Google, while the Central government is actively exploring tax incentives for investors. “The Centre is diligently working on these incentives, and an official announcement is expected soon,” Lokesh stated. “The State has also extended attractive incentives, comparable to those offered to major players like Kia Motors, amounting to nearly 7% of the total investment. The precise figures will be clarified as the project progresses.”
Lokesh proudly declared that in a remarkable span of just 17 months, Andhra Pradesh has emerged as the “most investment-ready State” in India. He credited this rapid progress to the “double-engine, bullet-train” leadership of Prime Minister Narendra Modi and Chief Minister N. Chandrababu Naidu. He highlighted that despite attempts by some to discourage Google, similar to past efforts against Singaporean investors, Andhra Pradesh has triumphed over negativity. “This success is not just for Andhra Pradesh; it is a source of pride for all of India,” he asserted. The State has already garnered investment commitments totaling an impressive $125 billion, with the current emphasis on accelerating their implementation.
Recalling the genesis of this transformative deal, Minister Lokesh recounted Google executives’ initial visit to Visakhapatnam in September 2024 to identify potential sites. Subsequent discussions in the U.S. brought forth the need for national-level policy reforms. “Chief Minister Naidu, Union Finance Minister Nirmala Sitharaman, and Union IT and Railways Minister Ashwini Vaishnaw collaborated closely with the Prime Minister to enact these necessary amendments,” he explained.
In response to media inquiries, Lokesh confirmed that numerous other states had vied for Google’s investment. However, Andhra Pradesh’s unparalleled “speed of doing business” and unwavering government support ultimately swayed Google’s decision. “After evaluating multiple global locations, Google recognized Andhra Pradesh’s exceptional commitment to fostering an investor-friendly environment,” Lokesh emphasized. Drawing a parallel, he confidently predicted, “Just as Microsoft revolutionized Hyderabad, Google is poised to transform Visakhapatnam. What took Hyderabad three decades to achieve, Visakhapatnam will accomplish in merely ten years,” underscoring the government’s ambitious vision for a $1 trillion economy.
Addressing concerns in the energy sector, Minister Lokesh criticized the previous administration for inefficiencies that led to a sharp increase in power tariffs. “They inexplicably canceled a vital 1,000 MW thermal power project in Visakhapatnam, forcing the State to procure electricity at an exorbitant ₹18 per unit,” he stated. He assured that under the current leadership, all power plants are now operating at full capacity, significantly reducing external power purchases to just 10% of previous levels.
Regarding “true-up” charges, Lokesh affirmed the government’s dedication to preventing such levies. “Our ‘True Down’ policy is designed to ensure maximum transparency and efficiency within the power sector,” he reiterated. He concluded by affirming Chief Minister Naidu’s steadfast commitment to equitable regional development, guided by the principle of “One State, One Capital, and Decentralised Growth.”