Texas leads as new index maps US states’ competitiveness for AI investment

A new data-driven ranking of US states highlights the growing importance of infrastructure, talent and energy in shaping the geography of artificial intelligence (AI) investment, with Texas emerging as the top destination.

Launched at the SelectUSA Investment Summit on May 5th, the BGR Best States for AI Investment Index evaluates all 50 states and Washington, DC, across more than 100 data points to provide what its creators describe as a “360-degree view” of AI readiness . The index assesses performance across five pillars: dynamic economy, business climate, data centre readiness, workforce advantage and quality of place.

Texas ranks first overall, followed by Utah and Florida, with California and North Carolina tied for fourth place. Virginia, Georgia and Colorado also feature prominently in the top 10, underlining the broad geographic spread of AI-related investment opportunities across the US .

The findings reflect the dual nature of the AI economy. While states such as California continue to dominate in “knowledge AI” segments — driven by strong research ecosystems and startup activity —others, including Texas and Florida, are leading in “physical AI” investment linked to data centres, manufacturing and energy availability .

According to BGR Analytics, the index is designed to address a key challenge facing investors: the lack of clear, comparable data to guide increasingly complex site selection decisions.

“AI is the world’s hottest investment sector. In 2025, AI captured 61% of all venture capital investment and US firms received 75% of that,” said Frank Ahrens, head of analytics at BGR Group. “But where should investors put their money? The Best States for AI Investment Index gives investors an actionable tool that helps them steer their dollars to the most attractive and AI-ready states.”

The report underscores how AI is reshaping traditional investment criteria. Access to affordable and reliable energy, data infrastructure and skilled talent pools are emerging as critical differentiators, alongside regulatory conditions and overall quality of life.

For state governments, the index also provides a benchmarking tool to identify strengths and gaps, enabling more targeted investment promotion strategies.

As AI continues to drive capital deployment across both digital and physical infrastructure, the index suggests that competitiveness will increasingly be determined at the subnational level, with states vying to position themselves at the forefront of the next wave of investment.