Missouri Partnership CEO, Subash Alias, recently shared his thoughts with Silicon Prairie News on why Missouri is positioned to be the next U.S. tech hub.
For decades, technology companies have huddled in densely populated metropolises such as Seattle, San Francisco, and New York City. However, the arrival of COVID-19 created conditions ripe for business expansion and realignment. In the wake of remote work, tech workers began seeking refuge in Midwestern states with more space and lower costs of living. And as workers fled the coasts, technology companies followed.
As a result, states that were once written off as “flyover states” have quickly become some of the U.S.’s top tech hubs. Take Missouri, for instance: St. Louis and Kansas City were among a handful of American cities that generated positive growth in year one of the pandemic.
Along with other trailblazing cities, they added a combined 14,000 tech jobs, and St. Louis alone saw its tech growth rate jump almost an entire percentage point in 2020. Unsurprisingly, the Brookings Institution recognized Kansas City and St. Louis as “rising stars” for growth in tech jobs before and during the pandemic. What’s more, they now rank as two of the best cities for women in the tech industry.
When choosing expansion locations for businesses, there are so many opportunities for technology companies in Missouri. For one thing, tech workers are coming to Missouri in droves: California was the most departed state in 2020, but Missouri was in the top 10 for incoming residents.
Of course, there are numerous reasons someone might relocate, but it’s hard to ignore Missouri’s enticing 89.8 cost-of-living index. Additionally, homeownership is out of reach for many in coastal cities, where the price of real estate is astronomical. In contrast, Missouri ranks eighth in housing affordability, with a median home value of $168,000.
In terms of business benefits, the Show-Me State stacks up competitively. It ranks fifth in the overall cost of doing business and 10th in economic health. Missouri is also one of the most tax-friendly states in the country, with a 4% corporate income tax rate and significant tax exemption opportunities for data centers. It’s no wonder, then, that Meta decided to open an $800 million hyperscale data center in Kansas City.
Missouri is also investing in electric vehicles and battery-related projects. In 2021, CBI released a whitepaper indicating that using lead batteries for electric vehicle charging could be technically and commercially viable. As a result, Missouri issued an RFP to design, build, and install these prototypes across the state.
Check out the full article from our CEO here to see the three tips for business owners exploring opportunities in the Show-Me State.