Gov. Abbott explains how Texas builds on the momentum of 13 straight Governor’s Cup wins.
When Texas claimed the 2024 Site Selection Governor’s Cup for having the most qualified capital investment projects of any state in the nation, the victory marked the Lone Star State’s record-setting 13th consecutive first-place finish. Texas secured this prestigious honor by tallying a remarkable 1,368 corporate facility investment projects last year — 114 more than the previous year and twice the number of second-place Illinois, which garnered 664.
At the helm of this award-winning effort has been Texas Governor Greg Abbott, who apologizes to no one for his state’s no-nonsense approach to economic development and business friendliness. As Abbott likes to say, Texas is the land of freedom and opportunity, and his administration has been characterized over the years by its business-friendly approach to taxation, regulation and recruitment.
In the following interview, Abbott outlines his approach to economic development and talks about his state’s many successes in this vital area.
Winning another Governor’s Cup award from Site Selection Magazine this year is the latest confirmation that Texas is winning at economic development. What are the factors that have enabled Texas to maintain its first-place ranking for well over a decade now?
GOV. ABBOTT: Texas leads the nation in attracting business location and expansion projects because Texas offers businesses the opportunity and freedom to succeed. Our 13th Governor’s Cup in a row is a testament to that winning formula. Ranked as the Best Business Climate in America, Texas offers unmatched business advantages, including no corporate or personal income tax, a highly skilled and diverse workforce, easy access to global markets, robust infrastructure, a reasonable regulatory environment and an exceptional quality of life. That is why Texas continues to lead in attracting businesses, investment and top talent from across the nation and around the world. I look forward to accepting another Governor’s Cup next year and beyond as we build a stronger, more prosperous Texas than ever before.
“Ranked as the Best Business Climate in America, Texas offers unmatched business advantages, including no corporate or personal income tax, a highly skilled and diverse workforce, easy access to global markets, robust infrastructure, a reasonable regulatory environment, and an exceptional quality of life.”
— Greg Abbott, Governor of Texas
Starbase, Texas, is about to become an actual city in your state. What does this say about the importance of the space program and the future of the space industry in Texas?
GOV. ABBOTT: It’s no surprise that Texas is the launchpad to the future. Texas is ranked No. 1 for aerospace manufacturing attractiveness. For decades, NASA’s Johnson Space Center in Houston has served as home to astronaut training and Mission Control. Today, multiple commercial space firms have significant advanced manufacturing facilities and state-of-the-art test sites in our great state, including SpaceX, Blue Origin and Firefly Aerospace. Axiom Space is building the world’s first commercial space station in Houston. Last year, I launched the Texas Space Commission to further Texas’ leadership in civil, commercial and military aerospace activities and promote innovation in space exploration and commercial aerospace.
Texas has made significant strides in recent years to shore up its electrical grid and the state’s overall resiliency when it comes to power, especially during times of weather crisis. What do you feel have been the most impactful upgrades in this area?
GOV. ABBOTT: Texas is the energy capital of the world. We lead the nation in oil and gas production, wind-powered generation and utility-scale solar production. Because of our all-of-the-above energy policies, Texas is well-positioned to lead in hydrogen, geothermal, nuclear and advanced battery storage solutions. As Texas continues to experience unprecedented growth, we have increased dispatchable power capabilities and continue to make strategic investments in critical infrastructure. Texas voters approved $5 billion for the Texas Energy Fund for low-interest loans to support the construction of new dispatchable generation. Additionally, the weatherization requirements for critical grid and natural gas infrastructure that I signed into law have proven effective. Working together with leaders in the energy industry, we will continue to increase capacity to ensure that every Texan and every Texas business has the power needed to thrive.
What have you learned about trade and foreign direct investment during your time as Governor of Texas that you are able to apply for the remainder of your tenure in office?
GOV. ABBOTT: I’ve learned without doubt that “Made in Texas” is a powerful global brand. Texas leads the nation in exports and is the top state for foreign direct investment. As governor, I’ve been honored to lead business development missions to France, India, Israel, Japan, Mexico, South Korea, Taiwan and the United Kingdom, with more to come. We’ve signed numerous economic development agreements and hosted top trading partners from around the world on their visits to Texas. We will strengthen these strategic partnerships and advance Texas’ position as a global economic powerhouse.
Texas continues to land major investments in the semiconductor supply chain and in the data centers sector. Why is Texas so dominant in both of these industries?
GOV. ABBOTT: Texas is where the integrated circuit was born and where the future of tech innovation is building. I was proud to sign into law the Texas CHIPS Act to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity at Texas higher education institutions, and maintain our position as the nation’s leader in semiconductor manufacturing. Texas is already home to one of the world’s largest data center markets, and continuing demand for AI solutions is driving significant investments in data center growth across the state. Coupled with the state’s leadership in cybersecurity, Texas is the new frontier in technological advancements. Bottom line: Texas has the innovation, the infrastructure and the talent to continue to lead the American resurgence in critical semiconductor manufacturing and the technologies of tomorrow.
“To ensure Texas continues to move at the speed of business, the state has launched the Texas Business Courts, a statewide, specialized trial court system created to resolve complex business disputes.”
— Greg Abbott, Governor of Texas
How will the Statewide Strategic Economic Development Plan help move the Texas economy forward over the remainder of this decade?
GOV. ABBOTT: As the eighth-largest economy compared to the nations of the world, we compete on the international stage with a clear message: Texas is and will remain a global economic powerhouse. My five-year economic development strategic plan creates a blueprint to continue economic expansion and job creation in Texas. “Bigger. Better. Texas.” results from a year-long collaboration with local, regional, and statewide organizations, business and industry leaders, and partnering state agencies led by my Texas Economic Development & Tourism Office. The detailed plan identifies target industry sectors expected to drive strategic economic growth, outlines initiatives to advance the state’s global competitiveness, and provides data and recommendations to inform economic development decisions for a stronger, more prosperous Texas for years to come. (https://gov.texas.gov/BiggerBetterTEXAS)
We’ve seen a lot of California companies elect to move their headquarters to Texas. Why do you think this is happening, and will we see more of that movement in the rest of 2025 and on into 2026?
GOV. ABBOTT: More than 300 businesses and major global brands have relocated their headquarters to Texas since I’ve been governor. They fled the stranglehold of over-regulation and high taxes in other states for the freedoms found in Texas. They are in good company. They join 52 Fortune 500 headquarters and one in 10 of all publicly traded companies in the U.S. Other industry leaders are also choosing to incorporate their businesses in Texas, particularly those in tech and innovation. To ensure Texas continues to move at the speed of business, the state has launched the Texas Business Courts, a statewide, specialized trial court system created to resolve complex business disputes. And we continue to make strategic investments in infrastructure, workforce development and the domestic supply chains critical to tech innovation as we welcome new business investments each day.
