Karnataka: Opposition slams ruling Congress govt after Google chooses Andhra for AI data centre

Google's new AI hub in Andhra Pradesh is set to create over 1 lakh jobs. (Courtesy: X | @naralokesh)

Opposition parties in Karnataka have criticised the ruling Congress government after Andhra Pradesh signed a Memorandum of Understanding (MoU) with Google on October 14 to establish a world-class AI data centre in Visakhapatnam.

The $15 billion project, Google's largest investment outside the United States, is expected to generate over 1 lakh jobs.

Quoting Moneycontrol’s report, Chikkaballapura MP and former health minister Dr K Sudhakar wrote on X, “Karnataka’s loss is Andhra’s gain! Bengaluru and Karnataka, once the preferred destination for global tech giants, are losing ground due to the apathy, arrogance, and policy paralysis of the Congress government. While Andhra attracts world-class investments, Karnataka watches opportunities and jobs move elsewhere. The youth of Karnataka deserve better governance, clarity, and confidence.”

Also, read: Andhra vs Karnataka: "Will compete for every rupee of investment," says AP Minister Nara Lokesh

Deputy Leader of Opposition Arvind Bellad too criticised the ruling government for all missed opportunities. “Bengaluru - once the Silicon Capital - is now losing investors due to arrogance and policy paralysis. Ministers threaten companies instead of driving growth. The government has turned Karnataka’s growth story into a governance disaster."

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Meanwhile, deputy CM DK Shivakumar said, “I don’t want to react to Andhra minister Nara Lokesh or anyone. You can’t match Karnataka and Bengaluru. From infrastructure and human resources to innovation and startups, Bengaluru has it all. Around 25 lakh people work here, including 2 lakh foreigners. Bengaluru contributes 39-40% of revenue to the Centre. Leaders from across the world contact me daily, and we discuss their demands. Many foreign companies that were working from rented offices are now setting up their own campuses. That is the power of Bengaluru. No state matches it in the country.”

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"I coordinate regularly with the IT and Industries ministers. Bengaluru’s contribution to the country is immense, and its workforce and innovation ecosystem remain unmatched," he added speaking at Vidhana Soudha.

Janata Dal (Secular) described the loss of Google's AI project as a 'major blow' to Karnataka, citing infrastructure shortcomings and missed investment opportunities. In a tweet, the party said, “State loses Google AI hub to Andhra Pradesh. Karnataka loses a Rs 1.3 lakh crore project due to negligence. #Google signs MoU with Andhra Pradesh to set up #AIHub in Visakhapatnam, promising Rs 10,000 crore/year and 30,000 jobs—a major project Karnataka missed out on. Businessmen may leave if a business-friendly environment isn’t ensured.”

Also, read: After Vizag, Nara Lokesh invites Bengaluru firms to Anantapur; Priyank Kharge hits back, calls it ‘desperate scavenging’

Karnataka IT Minister Priyank Kharge questioned the incentives offered by Andhra Pradesh, including Rs 22,000 crore in subsidies, discounted land and water tariffs, free transmission, and full GST reimbursement, raising concerns about their sustainability. Karnataka Home Minister G Parameshwara remarked, "If IT companies are moving out of Karnataka, the 'Global Investors Summit' would not have attracted Rs 10 lakh crore in investments this year."

Also, read: Arrogance, like potholes on roads, should be fixed first, says Nara Lokesh as war of words with Priyank Kharge intensifies