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BENGALURU: A political spat erupted on Wednesday between the Congress-led Karnataka government and the NDA-ruled Andhra Pradesh government after tech giant Google announced its decision to establish a mega Data and AI hub in Visakhapatnam instead of Bengaluru, traditionally regarded as India’s technology capital.

The announcement sparked a war of words between the two southern states, with Karnataka Deputy Chief Minister D.K. Shivakumar downplaying the development and asserting that no other Indian city can match Bengaluru in innovation, infrastructure, and human capital.

‘If Andhra gives better concessions, let them go’: Shivakumar

Speaking to reporters at Vidhana Soudha, Shivakumar said companies are free to set up operations in Andhra Pradesh if they find better incentives there.

The Deputy CM, who also holds the Bengaluru Development portfolio, added that the city remains India’s premier tech destination.

Shivakumar further highlighted the city’s massive contribution to the national economy, claiming that about 40% of the Centre’s tax revenue originates from Bengaluru.

Nara Lokesh hits back, calls Andhra a ‘double engine bullet train sarkar’

Responding to Shivakumar’s comments, Andhra Pradesh IT Minister Nara Lokesh took a swipe at Karnataka’s infrastructure, saying the state should first “fix its own problems.”

He touted Andhra Pradesh’s leadership and development model, describing the government as a “double engine bullet train sarkar” with a clear vision for growth and faster project execution.

Lokesh’s remarks come as the Chandrababu Naidu-led government in Andhra Pradesh seeks to rebrand Visakhapatnam as a new technology and industrial hub, backed by substantial infrastructure upgrades and policy incentives for foreign and domestic investors.

Google’s decision and the growing South India tech rivalry

According to reports, Google’s proposed Data and AI hub in Visakhapatnam will be one of the largest technology infrastructure investments in the region, with a focus on AI research, data processing, and sustainable energy integration.

The project is expected to generate thousands of skilled jobs and position Visakhapatnam as a new centre of digital excellence in southern India.

While the tech major has not disclosed the financial details, sources said Andhra Pradesh offered land, tax exemptions, and fast-track clearances to secure the deal — part of the state’s broader strategy to attract global tech players and diversify its industrial portfolio.

The move, however, has stirred debate over whether Bengaluru’s dominance in the tech ecosystem is facing new competition from cities like Hyderabad, Chennai, and now Visakhapatnam.

Bengaluru’s enduring tech leadership

Industry experts, however, believe that Bengaluru’s ecosystem advantage, talent density, and R&D infrastructure will continue to attract major players despite emerging regional competition.

“Visakhapatnam is a promising location, but Bengaluru’s depth of talent and institutional experience is unparalleled,” said an IT industry analyst based in the city.

The Karnataka government recently unveiled plans to further boost Bengaluru’s technology infrastructure through new industrial corridors, AI policy frameworks, and better public transport connectivity.

Conclusion

As Google’s decision ignites fresh political and economic competition between the southern states, both governments are framing the development as an opportunity — for Andhra Pradesh, a validation of its investment appeal; for Karnataka, a reminder of its enduring tech supremacy.

While the rhetoric continues, analysts say India’s broader digital economy could ultimately benefit from regional competition driving innovation and infrastructure growth.