Andhra Pradesh IT Minister Nara Lokesh intensified an ongoing interstate clash on Thursday, October 16, 2025, by mocking Karnataka after securing Google's $15 billion commitment for an AI and data hub in Visakhapatnam. Posting on X, Lokesh stated, "They say Andhra food is spicy. Seems some of our investments are too. Some neighbours are already feeling the burn," referencing Bengaluru's persistent infrastructure issues like poor roads and power shortages that have alienated businesses.

The investment, announced at the 'Bharat AI Shakti' summit in New Delhi, involves a one-gigawatt facility to be developed over five years, expected to create more than 30,000 jobs and generate substantial revenue. Andhra's package of incentives, including significant subsidies, tax exemptions, and utility concessions worth around ₹22,000 crore, proved decisive in attracting the tech giant.

The conflict began in mid-September when BlackBuck co-founder Rajesh Yabaji highlighted excruciating commutes and deteriorating roads in Bengaluru's Bellandur area, leading Lokesh to extend an invitation to relocate to Vizag's more efficient environment. Further grievances emerged from Biocon Chairperson Kiran Mazumdar-Shaw, who shared concerns from a Chinese associate about the city's garbage accumulation and hazardous potholes, alongside resident demands to Chief Minister Siddaramaiah for infrastructure fixes or withheld property taxes. In a recent NDTV interview, Lokesh touted Andhra's attraction of over $120 billion in investments, acknowledging the friction but asserting that competing states must adapt to the momentum. He countered efficiency critiques by noting, "If they’re inefficient, what can I do? Their own industrialists say the infrastructure is bad... there are power cuts."

Karnataka's leaders responded defensively, with Deputy Chief Minister DK Shivakumar emphasizing Bengaluru's irreplaceable assets in startups, talent, and innovation, which drive nearly 40% of India's IT exports. He remarked to reporters, "You can't match Bengaluru's infrastructure, human resources, and innovations... Let them do whatever they want," framing the loss as a result of excessive concessions elsewhere. IT Minister Priyank Kharge described Andhra's approach as desperate efforts to exploit a vulnerable setup, while opposition groups in Karnataka attributed the setback to governmental neglect, estimating a potential ₹1 lakh crore economic hit.

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Andhra Chief Minister N. Chandrababu Naidu celebrated the development, quipping that the "G in Vizag now stands for Google," as the state advances its plan for 6GW of data centers by 2029 through favorable land and energy policies. This episode reflects a broader competition among southern states, including Tamil Nadu's pursuits, for dominance in India's expanding digital sector valued at $250 billion. Lokesh praised the administration's swift reforms as a "double-engine bullet train" model, forecasting over 100,000 jobs from such initiatives.

Karnataka pledges recovery via international outreach, but the exchange highlights the urgent need to address civic shortcomings to retain its status as India's tech hub amid shifting corporate priorities.

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