Austin has given the US so much in terms of music, food, and culture — but its growing focal point as a national tech hub is what has investors excited. Austin’s unique combination of expansive culture, abundant market opportunities, and emphasis on work/life balance has created an irresistible environment for technology companies.
As Silicon Valley shrinks and Austin becomes an ever more viable alternative, it’s worth noting that this development did not occur in a vacuum. Here are some reasons why Austin is quickly becoming the tech hub of the future.
Austin is experiencing an explosion in population and technology
Austin has seen its population rise dramatically in the last ten years. According to CMS Wire, Austin has experienced more than five times the nation’s population growth between 2010 and 2020. What does 33.7% growth mean at a time when the rest of Texas only experienced about half that (16.8%)?
Those numbers coincide with the Austin-Round Rock metro area being named number one in CompTIA’s Tech Town Index 2020. The influx of people and tech companies means more opportunities at data centers and tech jobs than ever before. CompTIA reported over 68,000 IT jobs in Austin posted between 2019 and 2020, a year-over-year increase of 19,000.
Austin leads Texas when it comes to starting a business
Texas leads the pack when it comes to the best places to start a business, and Austin, in particular, has better access to resources than most other cities. Austin enjoys more venture capital, better education assets, and a 9% growth in the working-age population. Employees are attracted to Austin because of the amenities and low state taxes, while employers are increasingly interested in Austin’s access to critical technology like data centers.
Austin already acts as a tech hub to some of the largest tech companies in the world
The world’s largest tech companies, including NXP Semiconductor, Dell, Samsung, IBM, and Apple, employ 30,000 employees in Austin, and tech giants Amazon, Google, Facebook, and Apple have invested heavily in regional real estate. In addition, Austin’s existing infrastructure, including several notable data centers, is poised for sharp growth in the next decade and has been an additional draw for these companies. Silicon Valley served as the world’s first tech hub in the 20th century, but current trends suggest that Austin may take over as the tech hub of the 21st.
Austin offers organizational incentives that other states can’t match
Texas is one of only seven states with no corporate income tax. With additional capital funding available for businesses and individuals, the likelihood of business expansion increases. Companies in Texas enjoy more purchasing power, higher profits, and lower operating costs. Such advantages are significant for any business, particularly those requiring expensive and complex technological infrastructure.
The region’s corporate-friendly tax incentives and educated workforce allow smaller and midsized companies to innovate as quickly as tech giants, a rare advantage in any area with resources as significant as those available to Austin-based tech companies.
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