Over the past several years, Texas has steadily transformed into a prime destination for corporate expansion and relocation, emerging as one of the most sought-after states for the operational headquarters of major U.S. companies. Since 2020, a growing wave of corporations—many of them Fortune 500 firms—have either transferred their official headquarters or reincorporated in the Lone Star State. This trend represents not only a shift in geography but a broader realignment of corporate priorities toward cost efficiency, favorable governance, and improved quality of life. Companies departing densely regulated regions such as California and Delaware frequently cite a combination of economic incentives, a lower cost of living, and a business-friendly taxation system as pivotal reasons for choosing Texas as their new home.
According to the office of Texas Governor Greg Abbott, the movement of companies into the state reached a remarkable pace between 2020 and 2021, a period they described as an “acceleration phase.” During that span, a total of 121 firms completed relocations, with over half of them arriving from California, long considered America’s traditional hub of innovation. While this initial surge has since stabilized, the influx of major corporations has not diminished. To date, roughly 200 companies have shifted operations to Texas since 2020, reflecting a sustained pattern of migration across multiple industries. Governor Abbott’s office attributes this sustained success to several defining features of Texas’s environment: measured regulatory oversight, exceptional livability, abundant professional opportunities, and markedly lower operational costs. Even as new arrivals such as Coinbase continue to join the ranks, this relocation momentum has gradually evolved into a steady, long-term transition rather than a temporary trend.
A series of prominent firms illustrates this transformative corporate migration. Leading fast-food conglomerate Yum! Brands, parent company of KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill, announced in early 2024 that it would divide its headquarters across Texas and California to enhance inter-brand collaboration among employees. Roughly one hundred KFC corporate staff members will move from Louisville, Kentucky, to Texas, with an additional group of remote employees being asked to relocate to the central campus for in-person operations. Despite these changes, Louisville will continue to house both the Yum! Brands Foundation and certain administrative operations, reflecting a hybrid corporate strategy.
Similarly, the New York Stock Exchange declared that its Chicago office would be transitioning to Dallas, thus formally rebranding itself as NYSE Texas. In its announcement, NYSE President Lynn Martin emphasized that Texas—already home to the largest number of NYSE-listed companies, representing over $3.7 trillion in total market value—embodies a pro-business ethos unmatched by any other region. This symbolic reincorporation underlines the state’s growing prominence as a nexus for financial and economic innovation.
Chevron, another major player in the global energy sector, revealed in 2024 its plan to relocate its headquarters from San Ramon, California, to Houston. Company representatives underscored the benefits of geographic proximity to existing operations, enabling intensified cooperation among executives, employees, and key business partners. Governor Abbott personally welcomed the move on social media, hailing the energy giant’s decision as a homecoming. Chevron’s transition is projected to unfold gradually through 2029, consolidating all corporate functions within Texas, where the company already employs thousands in the Houston area.
Technology entrepreneur Elon Musk has also played a pivotal role in amplifying Texas’s reputation as a magnet for innovation and industry. In July 2024, Musk confirmed that X (formerly Twitter) would officially relocate its corporate base from San Francisco to Bastrop, Texas. This decision mirrored similar moves by his other enterprises, including Tesla and SpaceX, motivated by concerns over California’s living costs, regulatory climate, and public safety issues. Tesla had already completed its headquarters transition from Palo Alto to Austin in 2021, motivated largely by the Bay Area’s limited housing affordability. The company then chose to reincorporate in Texas in 2024 following a Delaware court ruling that rejected Musk’s proposed compensation package, thereby underscoring a broader preference for Texas’s stable and predictable legal landscape. Likewise, SpaceX announced that its headquarters would move from Hawthorne, California, to its Starbase facility in Texas, citing recent legislative developments in California as reasons for seeking a more accommodating environment.
Long before Musk’s ventures made headlines, other corporate giants had paved the way for large-scale relocations to Texas. In 2020, software and database powerhouse Oracle concluded a 40-year chapter in Silicon Valley by shifting its headquarters to Austin. The company cited increased workplace flexibility and employee autonomy as key motivators. Likewise, CBRE, the global real estate and investment services firm originally founded in San Francisco over a century ago, officially moved its headquarters from Los Angeles to Dallas in the same year, capitalizing on its already substantial North Texas presence. Between 2018 and 2023, data from CBRE itself revealed that Texas led the nation in net corporate headquarters gains among Fortune 500 companies.
Infrastructure and engineering enterprises have also joined the migration. AECOM, one of the world’s leading construction and design firms, transferred its headquarters from Los Angeles to Dallas in 2021, praising Texas as a “talent magnet” capable of attracting top engineering and consulting professionals. This move reflected both cost efficiency and an appreciation of the state’s thriving technical workforce.
Other prominent relocations underscored the appeal of Texas’s financial and logistical strengths. Financial services company Charles Schwab officially moved its main offices from San Francisco to Westlake, Texas, in 2021, attributing the decision to California’s significantly higher tax rates and operational expenses. Chairman Charles Schwab described the state’s cost burden as unsustainable when compared with Texas’s business environment. Similarly, McKesson, a major pharmaceutical and healthcare distribution firm, announced in 2018 that it would relocate to the Dallas-Fort Worth area, completing the transition by 2021. Four years later, company leadership reaffirmed their satisfaction, citing the region’s skilled workforce, vibrant community engagement, and convenient infrastructure as key benefits of the move.
The cryptocurrency industry has not been immune to this trend. In a notable 2024 announcement, Coinbase, one of the world’s most recognized digital asset exchanges, disclosed plans to reincorporate in Texas after leaving Delaware. Chief Legal Officer Paul Grewal explained that recent state legislation had made Texas an increasingly attractive home for technologically driven and innovative firms. He praised the modernization of the Texas Business Organizations Code under Senate Bill 29, which strengthened the business-judgment rule and further clarified corporate governance procedures. Together with the establishment of the Texas Business Court system, these legislative reforms have cultivated a legal environment characterized by efficiency and predictability, boosting corporate confidence in long-term investment.
Taken together, this wave of relocations illustrates a profound shift in the U.S. economic geography. Whether driven by financial pragmatism, governance reform, or lifestyle considerations, Texas now represents more than just an alternative—it has become a symbol of opportunity, independence, and enterprise flourishing on an expansive frontier that continues to attract the ambitions of America’s leading companies.
Sourse: https://www.businessinsider.com/companies-moving-to-texas
