AIADMK and JDS criticized Tamil Nadu and Karnataka governments respectively for failing to attract Google’s AI hub, which went to Andhra Pradesh. PM Modi and CM Naidu hailed the project for its potential to create jobs & boost digital infrastructure.
Chennai (Tamil Nadu): AIADMK leader and former minister P Thangamani criticised the DMK government in the assembly for failing to attract Google's investment to Tamil Nadu. He pointed out that despite Google CEO Sundar Pichai being Tamil, the company chose to invest in Andhra Pradesh instead. In response, Tamil Nadu Minister TRB Raaja highlighted the state’s ongoing efforts, noting that Foxconn is investing Rs 15,000 crore in Tamil Nadu, which will generate numerous jobs. He clarified that while one department of Foxconn reportedly decided against investing in the state, it does not invalidate the overall investment. Raaja rejected claims that the government did not pursue Google’s investment, saying there are multiple factors involved that he could not discuss publicly. He also emphasised that the DMK government has created 14,000 engineering jobs and urged opposition parties to stop mocking ongoing initiatives, stressing that these agreements impact young people’s livelihoods.
Janata Dal (Secular) in Karnataka accused Congress of failing to secure the hub for Bengaluru, stating that the state government was ignoring development priorities. The party argued that the project could have generated around 30,000 jobs in Karnataka, calling the loss a significant setback for the state. The JDS described the loss as a “major blow” to Karnataka, estimating that the project could have contributed ₹10,000 crore in annual revenue. They also highlighted long-standing challenges in Bengaluru, including potholes, garbage management issues, and other infrastructure problems, which they claim discouraged global investment. The party specifically called out Bangalore Urban Development Minister DK Shivakumar and IT & BT Minister Priyank Kharge, alleging that their governance contributed to the loss of the Google AI Hub.
Why is this Significant?
The controversy comes just days after Alphabet Inc’s Google announced one of its biggest investments in South Asia, worth USD 15 billion plan, to build a massive data centre and artificial intelligence (AI) hub in Andhra Pradesh over the next five years. Google CEO Sundar Pichai briefed Prime Minister Narendra Modi on the company’s plans for the AI hub, which will be established in collaboration with the Adani Group. The Visakhapatnam facility is expected to become Google’s largest AI hub outside the United States. Andhra Pradesh Chief Minister Chandrababu Naidu welcomed the deal, describing it as a transformative milestone for the state and India’s digital economy.
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Prime Minister Narendra Modi, during his visit to Andhra Pradesh on Thursday, October 16 congratulated the state for securing Google’s new AI Hub. Speaking in Kurnool, he praised CM Chandrababu Naidu’s leadership, stating the hub will be India’s first artificial intelligence center with advanced AI infrastructure, large-scale data centers, reliable energy supply, an enhanced fiber-optic network, and a new international subsea gateway reaching Visakhapatnam. Modi added that the hub will establish Visakhapatnam as a global center for AI and connectivity, benefiting both India and international stakeholders.
How will it Help India?
In a conversation with Prime Minister Narendra Modi, Sundar Pichai spoke about Google’s plans for its first-ever artificial intelligence (AI) hub in India. Describing the project as a “landmark,” Pichai explained that the hub will integrate gigawatt-scale computing power, advanced energy infrastructure, and a new international subsea gateway. “Through this hub, we will bring industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country,” he said on X following the agreement. The AI campus will be developed in collaboration with the Adani Group, in line with India’s Viksit Bharat 2047 vision to expand AI-driven services nationwide. Google emphasized that the hub will create significant economic and societal opportunities for both India and the U.S., ushering in a new era of AI capabilities.
The signing ceremony in Delhi was attended by Union Ministers Nirmala Sitharaman and Ashwini Vaishnaw, Andhra Pradesh Chief Minister N. Chandrababu Naidu, and state IT Minister Nara Lokesh. Vaishnaw highlighted the project’s role in training India’s next generation of AI professionals, while Naidu called it a “new chapter” in the state’s digital transformation, praising Visakhapatnam as the site for India’s first gigawatt-scale Google data centre. Google Cloud CEO Thomas Kurian added that the hub would provide cutting-edge AI infrastructure, enabling businesses and startups to innovate faster while fostering inclusive growth. The facility is expected to act as a springboard for AI research, enterprise solutions, and large-scale applications nationwide.
