Texas Named Top State for Business Attraction in 2025

Site Selection Magazine awards Texas its 14th consecutive Governor's Cup for economic development projects.

Mar. 14, 2026 at 6:56pm

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Texas has been named the top state for attracting business relocation and expansion projects in 2025, according to Site Selection Magazine. The state attracted over 1,400 projects, more than double the 680 projects landed by the second-ranked state, Illinois. Texas Governor Greg Abbott credited the state's robust local economic development teams for the achievement, which resulted in over 42,000 new jobs and $75 billion in capital investment.

Why it matters

Texas' consistent top ranking for business attraction underscores its pro-business climate and economic strength, which have helped drive growth in key sectors like artificial intelligence and data centers. However, the influx of data centers is also raising concerns in San Antonio about their impact on the city' s power and water utilities, leading the City Council to consider changes to zoning rules.

The details

Texas attracted 1,400 business relocation and expansion projects in 2025, more than double the 680 projects landed by Illinois, the second-ranked state. Ohio, California, and Florida rounded out the top five states. Houston, Dallas-Fort Worth, and Austin were three of the top six metros nationally for project wins, with Houston coming in second after Chicago. Much of Texas' job growth has been driven by the artificial intelligence and data center sectors, which are requiring significant power and water resources.

  • In 2025, Texas was named the top state for attracting business projects.
  • For the 14th consecutive year, Texas received Site Selection Magazine's Governor's Cup award.

The players

Greg Abbott

The Governor of Texas, who credited the state's robust local economic development teams for the achievement.

Site Selection Magazine

A trade publication for corporate real estate professionals and site selection consultants that awards the Governor's Cup to the state that attracts the most job-creating business relocation and expansion projects.

San Antonio City Council

The city council in San Antonio, which has asked city staff to look into the possibility of changing zoning rules about where data centers can be built due to concerns about their impact on the city's power and water utilities.

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What they’re saying

“There is no state that is better-designed or better-positioned economically now and going forward. When we have so many of those robust local economic development teams working alongside the State of Texas, that is wind at our back to ensure that we will be leading in projects now and going forward.”

— Greg Abbott, Governor of Texas (expressnews.com)

What’s next

The San Antonio City Council will decide whether to change zoning rules regarding the placement of data centers in the city.

The takeaway

Texas' consistent ranking as the top state for business attraction underscores its pro-growth policies and economic strength, but the influx of data centers is also creating new challenges for local communities like San Antonio to manage the impact on their infrastructure and resources.