Ohio has been ranked No. 1 for business in CNBC's 20th annual study, driven by strong infrastructure, affordable costs, quality of life, and access to capital.

From No. 34 in 2010, Ohio rose to the top in 2026, with North Carolina and Virginia following in second and third place.

Ohio secured the No. 1 spot by leveraging infrastructure, power capacity, land availability, and faster permitting to attract data centers, battery plants, and manufacturing projects.

However, the state faces risks to sustaining growth, including rising costs of data-center incentives, local pushback over power bills, and labor shortages.

Site-selection winners tend to attract capital expenditure, jobs, and multi‑year real estate demand, with AI-related investment cited as a driver.

Texas ranks No. 4, praised for its workforce and economy but criticized for weaker quality of life, including healthcare access, crime, and inclusiveness.

North Carolina is No. 2, Virginia No. 3, Texas No. 4, and Minnesota No. 5, with Arkansas rising 13 places to No. 28 as the most improved state.

The top five in the ranking reflect different strengths and trade-offs among states.

Economy remains a core category but dropped to second in 2026, while Workforce remains critical due to skills gaps and AI-influenced productivity dynamics.

The ranking represents a business climate score, not a guarantee for individual projects; site decisions depend on labor pools, ports, research institutions, and local incentives.

Continued competition among top states is expected, focusing on workforce, energy, housing costs, and permitting speed to deliver speed and reliability.

Virginia ranks third, with strong infrastructure and education but facing federal budget cuts and a relatively high cost of living despite high per-capita income.