Andhra Pradesh IT, Electronics and Education Minister Nara Lokesh has outlined the state's ambitious growth plans, explaining how Andhra Pradesh is positioning itself as a major investment destination while addressing concerns around data centres, artificial intelligence, job creation and the development of Amaravati.

Speaking during an interaction at the Bank of America India Conference 2026 in Mumbai, Lokesh answered a wide range of questions on foreign investments, industrial growth, technology, governance and the state’s long-term vision.

Responding to a question about Andhra Pradesh attracting a significant share of investments despite reports of declining FDI inflows into India, Lokesh said the state's resurgence is driven by three key factors. He credited Chief Minister N. Chandrababu Naidu's proven track record in building cities and industrial ecosystems, highlighted the government's speed in executing projects, and pointed to strong coordination between the state and the Centre. According to him, projects such as the Google Data Centre and ArcelorMittal's green steel investment were moved forward within 13 to 17 months, demonstrating what he called Andhra Pradesh's "speed of doing business."

Explaining how Google chose Visakhapatnam for its AI-focused data centre project, Lokesh revealed that discussions with the company's infrastructure leadership quickly evolved into a major investment. He said AI requires robust digital infrastructure and that Visakhapatnam's cable landing stations and plans for sovereign cloud infrastructure make it a natural destination for future technology investments. He added that the project moved from initial discussions to implementation within just 13 months.

When asked whether smaller businesses receive the same attention as global corporations, Lokesh stressed that small and medium enterprises remain critical to job creation. He said the government follows three guiding principles-Simplification, Speed and Stability-and is working on introducing a deemed permissions system to reduce regulatory delays. The objective, he said, is to make it easier for entrepreneurs creating 10, 50 or 100 jobs to establish and expand businesses.

On the challenge of securing public support for large industrial projects, Lokesh said trust remains the most important factor. He noted that farmers and landowners have strong emotional connections to their land, but confidence in the government's commitments has helped facilitate major projects. Referring to the ArcelorMittal project, he said hundreds of families voluntarily supported land acquisition efforts because they trusted the government's promises.

Addressing environmental concerns surrounding data centres, Lokesh attempted to counter common misconceptions. He pointed out that India benefits from a unified national power grid, unlike some countries. On water consumption concerns, he said nearly 3,000 TMC of water from the Godavari River flows into the sea annually, while the proposed 6.5 GW data centre ecosystem would require only around 1 TMC of water. He further argued that a thermal power plant consumes significantly more water than a comparable data centre facility and emphasized the importance of engaging with local communities to address concerns through open dialogue.

Artificial intelligence and its impact on employment also featured prominently in the discussion. Lokesh acknowledged concerns about job displacement but argued that every industrial revolution has ultimately created more jobs than it eliminated. He revealed that AI is already being used within the Telugu Desam Party and government systems to improve efficiency and access information. He said Andhra Pradesh's strategy is to align education with emerging technologies such as AI, machine learning and quantum computing, ensuring that young people become job creators rather than job seekers. The state, he added, has set a target of creating 2 million jobs over the next five years.

Asked about the relationship between central government policies and state-level implementation, Lokesh said policies may be designed in New Delhi, but success depends on execution at the state level. He rejected suggestions that the Centre favours specific states, arguing instead that states capable of moving quickly receive stronger support. As an example, he cited Andhra Pradesh's rapid allocation of 600 acres in Puttaparthi within 36 days for the Advanced Medium Combat Aircraft (AMCA) project after discussions with the Union government.

On manufacturing and industrial development, Lokesh said Andhra Pradesh is creating 22 specialised industrial clusters across sectors including data centres, pharmaceuticals, defence, space technology and advanced manufacturing. Rather than concentrating growth in a single city, the state is pursuing a decentralised strategy through three major economic regions designed to leverage regional strengths and create integrated industrial ecosystems.