Ohio's Top Business State
Ohio Earns CNBC's No. 1 Business State Ranking, Driven by Infrastructure and Cost
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Key Points
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CNBC's methodology for 2026 America's Top States for Business spans 50 states, 138 metrics across 10 categories, with infrastructure designated as the heaviest-weighted category in this year's ranking.
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Ohio has 26 SiteOhio Authenticated sites and earmarked $175 million for site readiness last year, providing construction-ready locations that can accelerate development.
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The state reports more than $1 billion in tax breaks granted in the last fiscal year to attract investment and support business growth.
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There is active regulatory scrutiny around data-center expansion, including a grassroots campaign that has gathered about 100,000 signatures to push a constitutional ban on large projects and a May order by Gov. DeWine to freeze the state's 100% sales tax break for data-center developers.
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Despite the top ranking, Ohio's workforce ranking sits at 34th, underscoring ongoing labor-force and educational attainment challenges even as infrastructure and cost advantages contribute to the state's overall competitiveness.
Ohio has been named the No. 1 state for business in CNBC's 2026 America's Top States for Business rankings, according to Yahoo Finance. It is the first time Ohio has held the top spot since 2007 and the first time a Midwestern state has led the list since 2015.
The ranking is based on 138 metrics across 10 categories, with infrastructure as the heaviest-weighted factor this year, according to Daily Tribune. The result capped a two-decade climb for Ohio, which once sat as low as 30th on the list.
How Ohio Climbed from 30th to First Place
Ohio's rise did not happen overnight. Daily Guardian reported that the state has spent roughly 20 years reshaping its business climate through targeted investment and policy changes. Gov. Mike DeWine and Lt. Gov. Jim Tressel called the ranking a validation of their long-term strategy to attract jobs and innovation.
JobsOhio, the state's private economic development arm, played a central role. CEO J.P. Nauseef pushed streamlined permitting and construction-ready sites. Ohio now has 26 SiteOhio Authenticated sites — locations where permits and infrastructure are already in place, so developers can break ground fast. The state also earmarked $175 million for site readiness last year alone.
Infrastructure and Market Access Drive Ohio's Top Score
Ohio's biggest edge is its location. More than 143 million people live within a one-day drive of the state, according to Daily Tribune. That kind of reach makes Ohio attractive to manufacturers, distributors, and logistics companies that need to move goods quickly.
Cost of doing business is another strength. The state granted more than $1 billion in tax breaks in the last fiscal year to pull in new investment, according to Yahoo Finance. Despite those advantages, Ohio's workforce ranking sits at just 34th — a gap that points to ongoing challenges in labor supply and educational attainment.
SoftBank's $4.2 Billion Data Center Sparks Debate
Data centers are a centerpiece of Ohio's growth story. The state already hosts 224 data centers. Now, SoftBank and AEP plan to build a $4.2 billion, 10-gigawatt facility in Pike County, according to Daily Guardian. Projects like this signal major confidence in Ohio's power grid and infrastructure.
But the expansion has stirred pushback. A grassroots campaign gathered roughly 100,000 signatures to push for a constitutional ban on large data-center projects. In May, Gov. DeWine ordered a freeze on the state's 100% sales tax break for data-center developers while regulators review the incentive program, according to Yahoo Finance.
Top Ranking Masks a Stubborn Workforce Problem
Ohio's No. 1 finish is not a clean sweep. Its workforce ranking of 34th is a significant weak spot. That score reflects gaps in skilled labor availability and education levels across parts of the state, according to Daily Tribune. Winning on infrastructure while struggling on workforce creates a mixed picture for businesses that need both.
State leaders say they are working on it. DeWine's administration has pointed to targeted workforce development programs as part of the same long-term strategy that drove the overall ranking higher. But closing a gap that large — from 34th to the top tier — will take years of sustained effort, according to Daily Guardian.
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