The Milken Institute’s 2026 Best Performing Cities: South takes eight out of 12 in Tier 1 Large Cities Category

The South claimed eight markets in the Milken’s Institute’s 2026 Best Performing Large Cities 2026 ranking. Those at the top of the Tier 1 category were: 

Rank MSA

1 Fayetteville-Springdale-Rogers, Ark

2 Huntsville, Ala.

3 Charleston-North Charleston, S.C.

5 Raleigh-Cary, N.C.

8 Orlando-Kissimmee-Sanford, Fla.

9 Austin-Round Rock-San Marcos, Texas

11 Wilmington, N.C.

12 Arlington-Alexandria-Reston, Va.

Others outside the South ranked in the top 12 included: Boise City, Idaho; Provo-Orem-Lehi, Ore; Salt Lake City-Murray, Utah; and Olympia-Lacey-Turnwater, Wash. 

 

U.S. Census releases new population growth stats

In 2025, the U.S. continued years of very little population growth. The culprit has always been low birth rates, but today, stagnant, almost zero immigration gains added to the mix. 

According to the Census, between July 2024 and July of 2025, population increased 1.8 million persons in the U.S. That is a rate of 0.5 percent. It’s the slowest growth in the U.S. since 2021’s rate of 0.2 percent. In 2024, the population grew by 1.0 percent, which, according to the Census, was the fastest year-over-year growth since 2005. 

The top five fastest-growing states during the period were South Carolina (1.46 percent); Idaho (1.44 percent); North Carolina (1.32 percent); Texas (1.25 percent) and Utah (1.03 percent). 

 

Regionally, the American South led all regions in population growth from July 2024 to July 2025

U.S. Regional Growth Rates

South: 0.66 percent

West: 0.59 percent

Midwest: 0.45 percent

Northeast: 0.23 percent

Source: U.S. Census Bureau, July 2024-July 2025

 

Over half of the leading business startup states in the United States are in the South

Recent data from the U.S. Census and the Bureau of Economic Analysis (BEA) shows that startup businesses in the U.S. are being led by states in the American South. Here are the figures regarding startup increases from Q2 2010 to Q1 2025, or 15 years compiled by Southern Business & Development. 

It should be noted that a reading of 12.0 or higher means there were more than 12 more startups each year on average for every 100 that existed from Q2 2010 to Q1 in 2025. 

The South was led by Mississippi with 13.2 startups, North Carolina and South Carolina with 12.3, Tennessee with 12.2, Texas with 12.8, Georgia with 12.7 and Florida with 12.7. Louisiana was the slowest state in the South with the least number of startups in 15 years at 8.8 percent. 

Average startup gains from Q1 2010 to Q2 2015

South: 11.2 percent

West: 9.6 percent

Northeast: 8.4 percent

Midwest: 7.3 percent

 

Texas and Florida at the top of the heap again in 2025 migration trends

The annual U-Haul Growth Index saw Texas and Florida, the South’s two most populated states, sit at the top nationwide in one-way moves (individual and family relocations). 

Like 2024, 2025 saw the Dallas-Fort Worth-Arlington mega-market lead the nation in growing metros. Texas also claimed the top three metros at the top of the Index. In addition to D-FW, those were Houston and Austin. 

In Florida, for the third time in four years, Ocala topped the U-Haul Growth Index as the No. 1 U.S. growth city proper. Lakeland also saw a tremendous influx of one-way moves. 

Top Metros in the U.S. 2025 according to the U-Haul Growth Index:

Dallas, Texas 

Houston, Texas 

Austin, Texas

Charlotte, N.C. 

Phoenix, Ariz. 

Nashville, Tenn. 

Charleston, S.C. 

Raleigh, N.C. 

Atlanta, Ga. 

Brownsville, Texas 

McAllen, Texas 

 

Phoenix, Raleigh and Austin named top destinations for construction work

A new report by Astrak shows that Phoenix, Raleigh and Austin have emerged as the three top U.S. markets for job growth and wages in the construction industry. Total U.S. construction spending is forecast to reach over $2.2 trillion in 2026, a two percent increase over 2025. 

 

ALABAMA

Montgomery Chamber of Commerce: Keep emphasis on Maxwell Air Force Base

From the Black Belt News Network: Hyundai has had a huge impact on central Alabama, but Montgomery should continue to focus on Maxwell Air Force Base as well, a chamber of commerce official said.

“When we discuss the economic impact that Hyundai has on Montgomery, this region and this state, I think sometimes we forget the economic impact that Maxwell Air Force Base has on not just Montgomery, but the state of Alabama,” Caleb Goodwyn, chief economic development officer for the Montgomery Regional Chamber of Commerce, told the Montgomery County Commission in the winter quarter. “It’s imperative that we continue to focus on Maxwell,” Goodwyn said. “That’s why we’ve made it our priority at the chamber to focus on the redevelopment of Maxwell Boulevard, and we’ve been working with our local partners.”

 

U.S. Steel still investing in Fairfield plant that first opened in 1909

U.S. Steel announced an investment of $75 million at it Fairfield Tubular Operations in the Birmingham metro. Fairfield Tubular Operations specializes in producing high-quality, American-made steel pipe and tube products, primarily serving the energy sector, including oil and gas customers.

 

ARKANSAS

U.S. Steel is building another steel plant in Mississippi County, Ark. 

One of America’s oldest industrial giants is investing $3 billion in a new and advanced steel mill in Mississippi County/Osceola, Ark. U.S. Steel already has a huge presence there in Big River Steel. This new mega-mill will be called “Big River Steel Works.” 

The new mill will feature two electric arc furnaces, an endless casting and rolling line (the first of its kind in the U.S.) and advanced finishing capabilities. The project is the largest private development in Arkansas history, bringing 900 plant jobs and thousands of construction jobs to the Osceola area. 

 

Hybar celebrates grand opening of world’s most sustainable rebar mill in Osceola, Ark. 

Hybar, a startup steel manufacturer, has opened its new plant in Mississippi County, Ark. Since the startup company was formed a little more than two years ago, it has completed a scrap metal recycling steel production mill, a behind-the-meter solar and battery storage electrical energy facility and a Mississippi River port operation for a total investment of nearly $1 billion.

 

FLORIDA

Another data center pops up in the South, this one in Polk County, Fla. 

The Polk County Commission approved a 10-year $150 million tax break for a data center in Fort Meade, Fla. The 1.9 million-square-foot, hyperscale data center campus will initially be an investment of $2.66 billion; however, the campus is expandable to 4.4 million square feet. About 50 jobs will be created. The data center will be powered by Duke Energy’s nearby Hines complex. 

 

GEORGIA

Georgia invests in rural site development grants

Governor Brian Kemp announced in January the third round of grants from the Rural Site Development Initiative (RSDI) within the OneGeorgia Authority. With $4.3 million included in this latest allotment, the total investment committed to rural site development projects since the program’s launch in FY 2025 is now up to $21 million.

 

Georgia approves Georgia Power’s massive expansion plan

To serve the incredible demand for power in this new A.I. world, the Georgia Public Service Commission recently authorized nearly 10 gigawatts of new power capacity for Georgia Power. The additional capacity will be in the form of new gas-fired plants and battery storage. 

 

LOUISIANA

Company finalizes agreement for entertainment redevelopment in Shreveport

G-Unit Film & Television Louisiana, LLC (“G-Unit”) has announced plans to invest over $124 million in a multi-phase initiative to develop three entertainment industry-related venues in Northwest Louisiana, revitalizing existing assets back into commerce and supporting the growth of the state’s entertainment industry. The project includes the renovation of the former Stageworks facility to support a variety of live event and production entertainment uses, the modernization of the former Millennium Studios campus to enhance production capabilities and the construction of a dome-style immersive venue and green space park, all located within downtown Shreveport.

 

First Solar inaugurates new $1.1 billion A.I.-enabled plant in Louisiana

In the winter, Arizona-based First Solar opened its solar module plant in Iberia Parish. The $1.1 billion facility, which spans approximately 2.4 million square feet and is about 11 times the size of the New Orleans Superdome, currently employs over 700 people and is expected to have 826 employees by early 2026. The facility is forecast to raise Iberia Parish’s GDP by 4.4 percent in its first full year of operations at capacity. America’s largest domestic solar manufacturer expects almost 18 GW of production capacity in 2027.

 

Amazon selects Louisiana for $12 billion data center campuses in major U.S. expansion

The project is expected to create 540 on-site new jobs and support an additional 1,700 in the community overall. The investment establishes Amazon’s first data center campus in Louisiana, supporting cloud computing technologies to serve customers and continue Amazon’s commitment to the state of Louisiana.

 

NORTH CAROLINA

What a blast! Winter deals rack up over 3,000 jobs in one week in North Carolina

Five companies announced they are creating thousands of jobs and investing hundreds of millions of dollars in North Carolina, and the announcements all came before the end of 2025.  

Below is a summary of each of the five projects:

• Vulcan Elements, a maker of rare earth magnets, is creating 1,000 jobs and investing $918 million in the Johnston County community of Benson. The company’s 1 million-square-foot facility will become the largest magnet factory in the world outside of China, and will help the U.S. reshore this crucial component of the supply chain for many defense and commercial electronics companies.

• Maersk, a global shipping company based in Copenhagen, Denmark, is creating 520 jobs and investing $16 million in Charlotte. The site will be home to the company’s North American headquarters. Maersk already has a sizable presence in Charlotte, and with this move, will eventually employ over 1,300 people in the Queen City.

• FIT Precast, an industrial concrete product manufacturer, is creating 125 jobs and investing $102 million in the Gaston County community of Gastonia. The company will build its headquarters and a concrete pipe production facility at the site, which will be the most advanced precast concrete manufacturing site in the U.S.

• Aspida Financial Services, a life insurance and annuity company, is creating 1,000 jobs and investing over $28 million in Durham. The company will locate to the former IQVIA building along I-40 and make the location its headquarters.

• Novartis, a life sciences company, is investing $771 million at three sites across Wake, Orange and Durham counties. The sites will house a small-molecule manufacturing facility, large-molecule manufacturing facility, and a fill-finish facility. Novartis, as part of an incentive agreement with the state of North Carolina, will create a total of 380 jobs across all three projects. However, the company anticipates exceeding that total and plans to hire upwards of 700 people at the three locations.

This handful of projects adds to what has already been a historic 2025 for North Carolina as it attracts new businesses and facilitates the expansions of existing companies. In 2025, companies announced plans to create more than 30,000 new jobs and invest over $22 billion in North Carolina.

 

Data centers are everywhere

Energy Storage Solutions is forging ahead with $38 billion (that’s with a “B”) of data center development in North Carolina. The two centers are in Tarboro, N.C., and a twin project is planned for Fayetteville, N.C. According to North Carolina sources, the two data centers will be the largest in the Southeast (at least until the record is broken, which could be a matter of weeks the way data centers are being announced these days). 

 

The big Toyota deal in Randolph County is now open for business

The history behind the Liberty site is well known by Southern Business & Development. We had someone photograph the late and former N.C. Secretary of Commerce Jim Fain and the retired Toyota site picker Dennis Cuneo walking the site around 2002. Publisher Michael Randle even emailed those photos to both and asked, “Hey, Fain,
Cuneo, is that you two walking the Liberty Site” with their faces clearly visible in the photo. Jump ahead a couple of decades and Toyota has now opened it massive EV battery plant there at the old Liberty site that stood vacant for about 25 years. 

Reuters wrote about the Toyota facility: “Toyota Motor said it had begun production at its $13.9 billion North Carolina battery plant as it ramps up hybrid production and confirmed plans to invest $10 billion over five years in U.S. manufacturing.” 

The Japanese automaker first announced the plan to produce batteries for its hybrid and electric vehicles in December 2021. Batteries from the plant are set to power hybrid versions of the Camry, Corolla Cross, RAV4 and a yet-to-be-announced, all-electric, three-row SUV. The plant is producing hybrid batteries for factories in Kentucky and a Mazda Toyota joint venture in Alabama. 

The Randolph County battery facility represents Toyota’s 11th major U.S factory and a huge win for the Carolina Core. 

 

Apple asks for more time for its large campus in North Carolina

North Carolina has backed Apple’s plans to postpone its hiring and investment goals that earned the company hundreds of millions in state incentives to build a corporate campus in Research Triangle Park. The Economic Investment Committee, the state board that approved the incentives in 2021, agreed to a four-year project extension recently at Apple’s request.

 

TEXAS

Eli Lilly’s deal in Houston and its $6.5 billion plant will average over $100,000 a year for each of the 600 jobs announced

The tax incentive agreement under Texas’ Jobs, Energy, Technology and Innovation (JETI) Act is now officially active after being signed by the governor’s office as of January 2026. Lilly will hire at least 600 full-time workers with an average annual wage of about $102,500. The project, announced in 2025, is one of the largest investments in pharmaceutical manufacturing in Texas and is part of Lilly’s broader effort to bring more manufacturing onshore in the U.S.

 

Google announces $40 billion investment in new A.I. data center infrastructure in Texas

Alphabet and Google CEO Sundar Pichai announced in the fall quarter that the digital giant will invest $40 billion in new cloud and A.I. infrastructure in Texas. The deal includes increased energy capacity and three new data center campuses to support what is the single-most active sector driving the economy in 2025 — artificial intelligence. The new data centers will be located in North Texas, West Texas and the Texas Panhandle. 

 

SpaceX seeking state incentives to add 1,000 new jobs at City of Starbase, Texas

SpaceX, now a routine space launch company and no longer a startup, is planning on hiring 1,000 workers at its Boca Chica, Texas “Starbase.” That would bring employment at the base to almost 4,000. SpaceX is planning two Triple Jumbo projects, requiring at least $250 million in investments and 500 jobs each to qualify for the maximum state incentives. The City of Starbase is located in Boca Chica, near the port of Brownsville and Matamoros, Mexico. 

 

Long-awaited 2,000-acre megasite in San Marcos, Texas is now being marketed

A huge, 2,000-acre megasite south of Austin is now shovel-ready. Called the AXIS Logistics Park, it is a planned industrial park in Caldwell County that currently offers 735 acres of industrial zoned property in the city of San Marcos. 

 

VIRGINIA

Companies to invest $120 million in Virginia for pharma training center

AstraZeneca, Eli Lilly and Merck are investing a combined $120 million in a new center for pharmaceutical training in Virginia. This initiative, developed in partnership with the state and its higher education institutions, aims to create a pipeline of skilled workers for the pharmaceutical manufacturing industry. The center is called the Virginia Center for Advanced Pharmaceutical Manufacturing (VCAPM). Plans are to train over 2,000 students annually.