Alabama has been named one of the nation’s top states for business in CNBC’s latest annual rankings. The state earned the No. 21 spot overall while receiving strong scores in several key categories that influence business growth and economic development.
Alabama Ranked No. 21 for Business in 2026
CNBC placed Alabama at No. 21 in its 2026 America’s Top States for Business rankings. The state slipped two spots from last year’s report but remained in the upper half of the nationwide list.
Researchers evaluated all 50 states using dozens of measurements across categories that businesses often consider when deciding where to expand or invest.
Alabama Earned High Marks in Key Categories
Alabama performed especially well in several areas that support business growth.
The state ranked:
No. 3 for cost of living
No. 10 for infrastructure
No. 14 for workforce
However, Alabama received lower scores for quality of life, education, and overall economic performance. Even so, its affordable living costs and strong infrastructure helped boost its overall ranking.
Infrastructure Continues to Drive Business Growth
This year’s study placed greater emphasis on infrastructure than in previous years. Transportation networks, utilities, water resources, and permitting processes all played a larger role in the final rankings.
In addition, CNBC considered factors such as workforce availability, technology, innovation, access to capital, and business friendliness.
Ohio claimed the top spot in the 2026 rankings, followed by North Carolina, Virginia, Texas, and Minnesota. Meanwhile, Alabama continued to stand out for its affordability and business-ready infrastructure, two factors that remain attractive to employers and investors.
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