Ohio takes top spot in CNBC’s 2026 state business ranking

Ohio ranked first in CNBC’s 2026 America’s Top States for Business study, scoring 1,623 points out of a possible 2,500 and securing its first No. 1 finish in the annual competitiveness survey. CNBC attributed the result chiefly to Ohio’s top-ranked infrastructure and lowest-ranked business costs, factors that can influence where companies place factories, offices, data centers and logistics operations.

The result marks a long rise for the state, which CNBC said placed 30th in the first edition of the ranking in 2007 and entered the top five for the first time last year. Gov. Mike DeWine, a Republican, said in his March State of the State address that Ohio had been focused on making itself a preferred location for business.

Infrastructure and costs drove the ranking

CNBC said Ohio ranked No. 1 for infrastructure, the largest category in its 2026 methodology. More than 143 million people live within a day’s drive of the state, giving companies broad access to customers and suppliers, according to the network’s analysis.

Site readiness also counted in Ohio’s favor. CNBC cited data compiled with the Site Selectors Guild showing that Ohio has one of the country’s strongest programs for matching companies with prepared development sites. The state set aside $175 million for site readiness last year, second only to California, and a state database listed 26 available “SiteOhio Authenticated” locations this month. JobsOhio describes those sites as ready for construction on the first day.

CNBC also ranked Ohio No. 1 for cost of doing business. Office and industrial rents are among the lowest in the United States, according to CoStar data cited by CNBC, while utility and insurance costs were described as reasonable. State financial disclosures showed Ohio granted more than $1 billion in tax breaks in the last fiscal year.

Ohio placed No. 9 for cost of living, with housing costs among the most affordable in the country, according to CNBC. It also ranked ninth for economy, ninth for access to capital and 10th for technology and innovation.

Data centers add growth and political friction

Ohio has become a notable data center market, with 224 facilities and a top-10 national ranking by count, according to Data Center Map data cited by CNBC. In March, SoftBank and electric utility AEP announced a public-private partnership for a 10-gigawatt, $4.2 billion data center project at a federally owned site in Pike County, east of Cincinnati.

The expansion has drawn opposition. CNBC reported that a grassroots group seeking a constitutional ban on future large data center projects in Ohio says it has collected 100,000 signatures and wants to put the measure on next year’s ballot. In May, DeWine ordered a temporary freeze on the state’s 100% sales tax break for data center developers.

The issue is also present in the governor’s race to succeed DeWine, who is term-limited. CNBC cited Democratic nominee Dr. Amy Acton’s call for guardrails to protect residential utility rates, union jobs and the environment. Republican candidate Vivek Ramaswamy has been more receptive to data centers in public comments, while saying developers should pay for their own electricity, according to CNBC.

Workforce remains the main constraint

CNBC identified workforce as Ohio’s clearest weakness. The state ranked 35th in that category and 23rd in education. The National Education Association data cited by CNBC showed Ohio with the ninth-largest average public school class size, while the State Higher Education Officers Association found state higher education funding lagging.

Only about 19% of Ohio adults have a bachelor’s degree or higher, according to Census Bureau data cited by CNBC. Labor analytics firm Lightcast found that Ohio is not retaining or attracting enough skilled workers. JobsOhio said in June it would invest $300 million over 10 years to recruit and train workers, estimating the state will need 540,000 STEM workers over the next decade.

North Carolina finished second overall, nine points behind Ohio, according to CNBC. Virginia ranked third, Texas fourth and Minnesota fifth. Arkansas was named the most improved state after rising 13 places to No. 28, while Hawaii placed last overall.

This story draws on original reporting from CNBC.