A view of Columbus, Ohio, Oct. 30, 2022.
Sky Noir Photography By Bill Dickinson | Moment | Getty Images
Offering unparalleled access at unrivaled costs, Ohio is America's Top State for Business in 2026.
It is the pinnacle of a long climb for the Buckeye State, once considered the buckle of the Rust Belt. Ohio finished 30th in the inaugural CNBC study in 2007. Today, it is a magnet for growth, capital and innovation, truly living up to its slogan, "The Heart of it All."
"We've been strategically focused on making Ohio literally the go-to state for business," said Gov. Mike DeWine, a Republican, in his State of the State address in March.
The efforts have paid off. Ohio broke into the top five in CNBC's rankings for the first time last year. This year, the 20th year of our annual study, the competitive environment plays to the state's biggest strengths.
Ohio ranks No. 1 for Infrastructure, the most important category under this year's Top States methodology. More than 143 million people live within a day's drive of Ohio, affording Ohio companies better access to markets than any other state. But that is just the beginning of Ohio's infrastructure advantage.
The state offers one of the nation's most robust programs to pair companies with shovel-ready sites for development, according to data compiled for the CNBC study by the Site Selectors Guild. The state earmarked $175 million for site readiness last year, second only to California. As of this month, a state database listed 26 available "SiteOhio Authenticated" sites, which the state economic development agency, JobsOhio, says are "construction ready on day one."
U.S. Energy Secretary Chris Wright, fourth from right, and SoftBank Group Chairman and CEO Masayoshi Son, third from right, participate in a groundbreaking ceremony for a data center to be built at the U.S. Department of Energy's Portsmouth Site, in Piketon, Ohio, March 20, 2026.
Brian Kaiser | Bloomberg | Getty Images
With good connectivity and abundant electrical power for sophisticated computing, Ohio is already in the top 10 for the number of data centers at 224, according to Data Center Map. And the state will soon be home to one of the largest data centers in the world under a public-private partnership announced in March between SoftBank and electric utility AEP. The 10-gigawatt, $4.2 billion facility is being built on a federally owned site in Pike County, east of Cincinnati, where a U.S. uranium enrichment facility for nuclear weapons once stood.
Data center development is controversial, however. A grassroots organization seeking a constitutional ban on future large projects in Ohio claims to have gathered 100,000 signatures and is now hoping to get the measure on the ballot next year. In May, DeWine, an early proponent of the facilities, ordered a temporary freeze on the state's 100% sales tax break for data center developers.
Ohio Gov. Mike DeWine attends a ceremony with the 2025 College Football Playoff National Champions Ohio State Buckeyes on the South Lawn of the White House, April 14, 2025.
Tom Williams | Cq-roll Call, Inc. | Getty Images
The data center issue is helping to shape a harsh debate about affordability in the race to succeed DeWine, who is term-limited.
The Democratic nominee, former state Public Health Director Dr. Amy Acton, is calling for guardrails on data centers to protect residential utility rates, union jobs and the environment.
The Republican candidate, tech entrepreneur Vivek Ramaswamy, has been more receptive to data centers, based on his public statements, though he said developers should be required to pay for their own electricity.
While affordability has been a major focus in the gubernatorial race, Ohio has a much better track record than most states.
The state ranks No. 1 in the important Cost of Doing Business category. Rents for office and industrial space are among the lowest in the country, according to real estate data firm CoStar. Insurance and utility costs are reasonable, and incentives provided to businesses are among the most generous in the country. State financial disclosures show the state gave out more than $1 billion in tax breaks last fiscal year.
A neighborhood in the Cincinnati area.
Posnov | Moment | Getty Images
Individuals do well, too. Ohio ranks No. 9 for Cost of Living, with housing costs among the most affordable in the country.
Ohio also finishes in the Top 10 in other categories: Economy, at No. 9; Technology and Innovation, at No. 10; and Access to Capital, at No. 9.
Despite all its progress, Ohio still has considerable work to do.
Ohio ranks No. 23 in Education, with the ninth-largest average public school class size, according to the National Education Association. State funding for higher education lags, according to the State Higher Education Officers Association.
That contributes to Ohio's most glaring competitive weakness, in the important Workforce category, where America's Top State for Business finishes No. 35. Only about 19% of Ohio adults have a bachelor's degree or higher, according to the Census Bureau, placing Ohio workers in the bottom tier of the nation for educational attainment. More crucially, not enough skilled workers are staying in Ohio or moving there, based on data compiled for CNBC by labor analytics firm Lightcast.
Hoping to close the state's skills gap, JobsOhio announced in June that it will invest $300 million over the next 10 years to recruit and train skilled workers. The agency estimates the state will need 540,000 workers in science, technology, engineering and math, or STEM, occupations in the decade to come.
"This is aimed at getting people prepared for real jobs in the real world," DeWine said in announcing the JobsOhio Experiential Learning Initiative.
The CNBC study measures all 50 states across 10 categories of competitiveness, for a total of 2,500 possible points. Ohio scored 1,623 points to capture this year's crown.
Our methodology assigns a weight to each category based on how frequently the states cite it as a selling point. The idea is to measure the states based on the criteria they use to pitch themselves to business.
Here are this year's categories and point totals:
North Carolina, which was last year's Top State, finishes No. 2 this year. The Tar Heel State has been on an impressive run in CNBC's rankings. The state has finished first or second in each of the past six years, and it misses a repeat win in 2026 by just nine points.
A view of downtown Charlotte, North Carolina, May 7, 2022.
Sky Noir Photography By Bill Dickinson | Moment | Getty Images
North Carolina is top-ranked in the Economy category this year, even though the state went a full year without being able to pass a budget. Its state legislature finally passed a budget last week, which Gov. Josh Stein signed on Tuesday. Job growth and economic growth have been strong. But that growth has helped push costs higher. North Carolina ranks 35th for Cost of Living. And poor worker protections and rising crime help push the state to No. 34 for Quality of Life.
Virginia finishes third, ranking No. 2 for Infrastructure, behind Ohio, and No. 5 for Education. But federal budget and personnel cuts have hurt the Old Dominion's Economy ranking, which falls to No. 23 in 2026 compared with No. 14 last year.
Texas comes in fourth, ranking No. 1 for Workforce and No. 2 for Economy and Access to Capital. But persistently high crime, poor healthcare, and a lack of inclusiveness land the Lone Star State at No. 49 for Quality of Life.
No. 5 Minnesota, by contrast, ranks No. 4 for Quality of Life, with outstanding healthcare, strong worker protections, and inclusive state laws. But the North Star State can be crushingly expensive, with high taxes and living costs.
This year's Most Improved State is Arkansas, which has seen an influx of workers in the corporation-heavy northwest part of the state, home to Walmart, Tyson Foods and J.B. Hunt Transport Services. The Natural State rises 13 spots to No. 28 overall, led by a 23-place jump to No. 13 in the Workforce category.
We rank all 50 states, so if there are Top States, there must be Bottom States.
At No. 46 is West Virginia, which ranks No. 48 for Economy and No. 49 for Access to Capital. But The Mountain State is No. 1 for Cost of Living.
Louisiana comes in at No. 47. The Pelican State ranks poorly for Economy, at No. 47; Business Friendliness, at No. 48; and Quality of Life, at No. 46.
Coming in at No. 48 is Rhode Island. The Ocean State ranks last for Economy, No. 48 for Access to Capital, and No. 46 for Infrastructure. Yet it still manages to be America's fifth-most expensive state to live in.
No. 49 is Alaska. The Last Frontier ranks dead last for Education and Access to Capital, and No. 49 for Infrastructure.
This year's Bottom State is Hawaii. The Aloha State comes in last for Infrastructure and the Cost of Doing Business, and at No. 47 for Cost of Living. Even Hawaii's legendary lifestyle takes a hit in 2026, because childcare is more expensive than it is in any other state. That drops Hawaii to No. 6 for Quality of Life.
Didn't see your state mentioned? You can see where it ranked overall, and in all 10 categories of competitiveness, on the 2026 America's Top States for Business full rankings page.
As always, CNBC welcomes your feedback. On social media, use the hashtag #TopStates.
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