When Ravi Bhatt visited Bloomington, Indiana, in 2021 to explore office space for his AI-driven software company, Folia, he didn’t plan on relocating. After 17 years of building software businesses in Chicago, he was firmly established there. However, as an Indiana University alum, Bhatt was aware of IU’s strong academic focus on AI, machine learning, and cognitive science. He sought a location that could foster collaboration and give him access to both cutting-edge research and top tech talent, including IU’s 50,000 students.
“Moving wasn’t even a thought,” Bhatt recalls. “Then, on my way back, I called my wife and said, ‘How crazy would it be to move down here?'”
It turned out, not so crazy. Bloomington’s small-town atmosphere, coupled with a lower cost of living, made the move appealing. “Here, I can easily talk to a faculty member on campus, work in a tech corridor office, enjoy a meal at a local restaurant, and spend quality time with my family—something not possible in a larger city,” Bhatt explains.
His decision reflects a growing trend in corporate America. More companies are leaving traditional urban centers for states offering business-friendly environments, skilled workforces, and a better quality of life at a lower cost.
The 2025 Chief Executive Best & Worst States for Business rankings highlight this shift. States like Georgia and Utah have climbed the ranks, while Virginia has made significant gains, largely due to its efforts to foster tech growth beyond Northern Virginia. “Our goal is tech-driven economic expansion throughout the state, not just concentrated in Northern Virginia,” says Jason El Koubi, CEO of the Virginia Economic Development Partnership.
Other states have also seen notable improvements. Iowa jumped nine spots to No. 14, while Montana rose six places to No. 15. Wisconsin and Alabama gained ground as well. However, Delaware fell 10 spots, likely due to tax hikes and changes in litigation policies. Arizona dropped six places to No. 10, facing challenges from population growth and infrastructure issues, compounded by political gridlock.
These changes reflect a broader pattern: CEOs are increasingly open to exploring new locations for their businesses. A recent survey found that 54% of CEOs were more willing to consider new locations, up from 49% the previous year. Additionally, 42% were considering opening new facilities or moving their headquarters to another state.
As states compete for corporate investment, they are adjusting their strategies to remain attractive, focusing on fostering innovation, attracting skilled workers, and driving economic expansion. Below, we explore three key drivers of this shift.
Policy Reset: Stability Over Change
Amid federal uncertainty and global instability, states are highlighting their political and economic stability. Georgia, for example, boasts a long history of bipartisan pro-business policies. “Whether Democrat or Republican, we’ve been consistently pro-business for the past 50 years,” says Pat Wilson, Georgia’s Economic Development Commissioner. “Sometimes, consistency is just as important as driving change.”
This stability is often paired with lower corporate taxes and fewer regulations. Several states, including Louisiana, Nebraska, North Carolina, and Pennsylvania, have reduced corporate tax rates as of January 2025.
Iowa’s Governor Kim Reynolds has been a vocal proponent of deregulation. Since taking office in 2018, she has cut more than 1,200 regulations and continues to review policies to ensure they remain effective. “We have a five-year rolling review so every regulation has to be justified to stay on the books,” Reynolds says.
Tech hubs like Texas, Tennessee, and Florida have also received praise from CEOs for their low-regulation environments. For example, Miami-based fintech company Milo has benefited from Florida’s deregulatory stance, which has fostered innovation in the area.
Talent and Training: The New Competitive Edge
While business-friendly policies and lower operational costs are important, talent is now the top priority for CEOs. In a recent poll, 75% of CEOs cited access to skilled workers as their primary concern, surpassing taxes for the first time.
“Talent is everything,” says Terry Lutz, chair of McClure Co., a mechanical construction and services firm based in Des Moines, Iowa. Iowa’s robust education system, with one of the highest percentages of high school graduates and four-year degree holders in the country, is one of the state’s key strengths.
States like Georgia are responding by creating workforce development programs. Georgia’s Quick Start program provides customized job training for new and expanding businesses, helping companies efficiently hire and retain talent.
Ohio and Indiana have also implemented workforce development initiatives to address the skills gap, particularly in manufacturing roles. These programs are tailored to predict future workforce needs and train workers accordingly.
Virginia’s Tech Talent Investment Program is another example, with the state committing $1.1 billion to train and recruit tech workers. This program played a key role in Virginia’s successful bid to host Amazon’s HQ2 and is already exceeding its recruitment targets.
The AI Boom: Tech Firms Look Beyond Silicon Valley
As AI continues to reshape the tech landscape, companies are moving to states with affordable energy, skilled workers, and access to emerging technologies. North Carolina has become a hub for major data centers from companies like Google, Microsoft, and Apple. In 2024, the state also attracted new tech investments in life sciences and healthcare.
Utah’s “Silicon Slopes,” covering areas around Salt Lake City and Provo, is seeing a surge in AI investment. In March 2025, a new 100-acre AI data center was announced in West Jordan, Utah, one of the largest of its kind globally.
Iowa, too, is capitalizing on the AI boom. With one of the lowest energy costs in the country and a growing renewable energy sector, Iowa is becoming a key player in AI and data processing.
Louisiana is also positioning itself as a tech leader, with a focus on AI and virtual reality. Governor Jeff Landry has been working to develop a tech corridor between Baton Rouge and New Orleans, leveraging Louisiana State University’s research capabilities to attract tech talent. A major milestone came in December 2024 when Meta Platforms announced plans for a $10 billion AI data center in the state.
For CEOs like Jenny Zhan of Beyond International, moving from Irvine, California, to Houston, Texas, was driven by a need for talent. “Talent is always seeking opportunities for long-term growth, and Houston is providing those opportunities for young talent,” Zhan says.
As states vie for emerging industries like AI and automation, the decision to relocate goes beyond incentives. For many CEOs, it’s about finding the right environment to fuel long-term growth.
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