In Texas America Trusts
The Economist this week (reluctantly, it seems) highlights that Texas is steadily establishing itself as "America Inc’s" new "center of gravity", outperforming all other states in business investment and population growth. Between 2020 and 2025, Texas created approximately one-fifth of all net new jobs in the United States, and it is currently on track to overtake California as the nation's largest economy.
- Energy Leadership: Beyond its traditional dominance in oil and gas, Texas has become a green energy hub. This year, the state is projected to build two-fifths of all new utility-scale solar in the U.S., including the 837-megawatt (MW) Tehuacana Creek project, the largest set to come online in the US in 2026.
They cover some key areas, yet they seem to miss the underlying reason behind these policies. It's almost as if they're too proud to believe that a Southern state—the antithesis to California, New York and Washington (not to mention the "Old World")—is beating them at their own game.
The Lone Star State's success rests on a simple formula: abundant energy and land, low taxes, and light-touch regulation. No Magic formula, just common sense.
- Energy Leadership: Beyond its traditional dominance in oil and gas, Texas has become a green energy hub. This year, the state is projected to build two-fifths of all new utility-scale solar in the U.S., including the 837-megawatt (MW) Tehuacana Creek project, the largest set to come online in the US in 2026.
- From Wall Street to "Y’all Street": Dallas is rapidly becoming a financial heavyweight. Goldman Sachs is currently building a $500m campus for 5,000 employees. JPMorgan Chase now employs more staff in Texas than in New York. Austin’s "Silicon Hills" saw venture capital investment reach $7.4bn last year, making it the fifth-most-active city for VC in the country.
- Data Centers & Tech: Texas' "all-of-the-above" energy strategy has made it fertile ground for data centers, hosting roughly half of all off-grid energy projects in America. Texas currently has 87 operating data centers with a combined capacity of 4.8 gigawatts (GW), with another 6.5GW under construction, the most in North America. Over 150 additional projects are planned, representing 90+ GW of future capacity.
- Business Friendly: State officials are actively working to supplant Delaware as the hub for corporate law by introducing business-friendly measures, such as restricting the ability of shareholders with less than a 3% stake to sue firms. This, coupled with low business taxes is increasingly luring companies away from traditional hubs like New York and California. Over 180 companies moved their headquarters to Austin, Dallas or Houston between 2020 and 2025, including Tesla and Caterpillar. The latest to make the move is ExxonMobil, reincorporating in Texas, where its HQ has been for years now.
Posts
No comments:
Post a Comment
___________________________________
Commented on The MasterFeeds