Phoenix's tech momentum fuels Arizona's strong business attraction ranking

By Hailey Mensik

Arizona is again a top state in its region for attracting business investment, according to Site Selection magazine’s annual rankings.

Arizona ranked No. 1 for the second year in a row for the Mountain Region, followed by Utah, Colorado, Wyoming, Idaho, Nevada, New Mexico and Montana.

While Arizona ranked as a top state in its region, it didn’t end up making the top 10 list nationally. Texas took the top spot, followed by Indiana, North Carolina, Ohio, Illinois, Kentucky, Alabama, Louisiana, Georgia and Virginia.

Some criteria analyzed to determine the rankings include total new and expanded facilities, total capital investment in new and expanded facilities, total new jobs created, state tax climate ratings, workforce readiness, and other factors.

Arizona certainly has attracted an abundance of businesses looking to set up shop in recent years, including its largest project — Taiwan Semiconductor Manufacturing Company’s $165 billion semiconductor plant in North Phoenix. TSMC itself has begun attracting other advanced manufacturers and suppliers nearby, like Amkor, which plans to build its own $2 billion facility in Peoria to help test and package TSMC’s chips.

Site Selector Magazine’s latest edition includes a spotlight article on Phoenix, calling it “the region redefining the future of tech."

“Phoenix, once considered an underdog in the race for tech talent and corporate attention, is catching up fast,” the article said.

Affordability, infrastructure, access to talent, and a public-private ecosystem designed to support fast growth are key drivers fueling Phoenix’s momentum, she writes.

Commerce Authority, GPEC have huge deal pipeline

The Arizona Commerce Authority recently said it has 482 active projects in its pipeline of businesses looking to expand or relocate to the state. The majority of those are in advanced manufacturing, with 54 semiconductor projects in the pipeline and 88 more in the battery-making sector.

The Greater Phoenix Economic Council has about 260 active deals, CEO Chris Camacho said. About 80% are industrial, and about half of those are for advanced technology projects, he said.

Since 2022, the organization has helped 18 advanced manufacturing companies expand into the Arizona market, representing 3,113 jobs in their first phases. Six of those companies were semiconductor-related.

Alongside Site Selector’s newest prosperity rankings, it also named winners for its Mac Conway Awards for Economic Development Excellence. GPEC was named among the country's 21 top regional economic development groups.

Site Selection also released a report on the best places to invest globally, and the US was No. 1 for foreign direct investment confidence.

According to the ACA, 159 of the projects in its pipeline are from international companies. Last year Arizona’s international trade reached record levels, with exports by Arizona companies rising to $32.2 billion in 2024, an 11.6% jump from 2023, Governor Katie Hobbs announced during an International State of the State Address in March.

Phoenix’s spot in the rankings “reconfirm and show that many of the policy decisions that have been made in the state, which have really occurred in earnest over the last 15 years, are starting to pay off,” said Chris Lloyd, a site selector consultant with McGuire Woods Consulting LLC.

Final Thoughts

Arizona’s momentum in tech and advanced manufacturing is transforming its reputation from regional player to global competitor. While not yet in the national top 10, its dominance in the Mountain Region and strategic wins like TSMC’s mega investment underscore a long-term trajectory of growth. Phoenix is fast becoming a magnet for innovation, talent, and global business — proof that its economic strategy is working.