State-by-state rankings reveal which are leading and gaining ground—and which risk falling behind in the race for AI leadership.

Washington, D.C. — The American Edge Project (AEP) and the Technology Councils of North America (TECNA) today released a major new report, America’s AI Surge: Powering Investment, Jobs, and Growth in Every State, providing one of the first comprehensive state-by-state analyses of how artificial intelligence (AI) is fueling America’s economy.

The findings show that AI-driven investment, tech hiring, and data center construction are transforming local economies—from manufacturing corridors in the Midwest to fast-growing Sun Belt metros and rural communities.

The full study can be found here.

According to the report:

• $560 billion in AI-related venture investment has flowed into all 50 states across nearly 27,000 deals from 2019 to the first eight months of 2025.
• Tech jobs are growing two-and-a-half times faster than the rest of the economy, with 33 states exceeding 10 percent tech job growth since 2019.
• AI infrastructure is revitalizing communities nationwide. The U.S. now has 4,149 active data centers, with 2,788 more under construction or announced – a build-out projected to create 5.4 million temporary and permanent jobs while generating $27 billion in new state and local tax revenues over the next decade.
• Private-sector AI data center construction spending grew nearly 70 percent from 2023 to 2024, far outpacing every other commercial category.

AI Is Now a 50-State Economic Engine
“AI is no longer just a Silicon Valley story – it’s a 50-state economic engine,” said Doug Kelly, CEO of the American Edge Project. “Whether you live in a coastal city, a manufacturing community, or a rural county, AI is driving new jobs, new infrastructure, and new opportunities. This is the biggest private-sector build-out in peacetime history, and every state stands to benefit if we get our policies right.”

State AI Leaderboard: How States Rank Across Investment, Jobs, and Infrastructure
The new AEP and TECNA report includes four ranking categories that show which states are leading – and which risk falling behind – in the fast-moving AI economy:

• AI/ML Venture Capital Leaders: California, New York, Massachusetts, Texas, and Florida lead the nation in AI venture investment.
• Fastest Tech Job Growth: States such as Tennessee (+37 percent), Wyoming (+36 percent), Texas (+33 percent), and Florida (+30 percent) are seeing the biggest surge in tech hiring.
• Infrastructure Powerhouses: Virginia, Texas, Georgia, Pennsylvania, Arizona, Illinois, and Ohio rank among the top states for new data center construction and job creation.
• Legal Risk Hotspots: New York, Massachusetts, Texas, California, Illinois, and New Jersey have introduced the highest number of AI-related bills, creating major uncertainty for innovators, not just in their states, but for the entire country.

A Growing Divide: Which States Will Lead the AI Future?
The report warns that more than 1,100 state-level AI bills introduced in 2025 risk slowing momentum by adding legal uncertainty, raising compliance costs, and discouraging capital investment. States embracing regulatory restraint, modern permitting, and stronger energy competitiveness are attracting more data centers, more tech jobs, and more AI companies.

“These rankings make one thing clear: states that strengthen energy competitiveness, modernize permitting, and adopt pro-innovation policies are the ones positioned for long-term AI leadership and economic growth,” said Jennifer Young, CEO of TECNA.

Policy Recommendations to Ensure Lasting American AI Leadership
The report outlines a strategic set of actions that federal and state leaders can take now to secure long-term U.S. competitiveness and keep America ahead in the global AI race, including:

• Codifying and funding President Trump’s AI Action Plan. His plan addresses many of the challenges facing American AI leadership, and will create a durable federal playbook for growth, prevent future administrations from reversing course.
• Modernizing and expanding America’s electric grid to meet AI-driven power demand.
• Streamlining permitting for data centers, semiconductor facilities, and energy infrastructure.
• Strengthening talent pipelines through Science, Technology, Engineering, and Mathematics (STEM) education, workforce training, and high-skilled immigration reform.
• Temporarily pausing state-level over-regulation that threatens AI innovation and job creation.
• Expanding local innovation sandboxes and public–private partnerships that accelerate real-world deployment of AI solutions.

 “America has the talent, capital, and creativity to lead the world in AI,” AEP’s Kelly said. “But leadership isn’t guaranteed. This is America’s modern-day moonshot – and the states that embrace smart policy will claim the jobs, investment, and prosperity of the AI era.”

About the American Edge Project
The American Edge Project is a coalition dedicated to protecting America’s technological advantage, promoting innovation, and ensuring the U.S. remains the global leader in emerging technologies that strengthen our economy, security, and freedom.

About TECNA
The Technology Councils of North America (TECNA) represents more than 60 regional technology councils and hundreds of thousands of tech workers across the U.S. and Canada. TECNA promotes pro-innovation policy, strengthens regional tech ecosystems, and supports collaboration across the North American technology community.

###