Since 2020, a significant trend has emerged as major companies are relocating their headquarters to Texas. According to state data, around 200 businesses, including notable names like Tesla and Chevron, have made the move. Governor Greg Abbott has highlighted the favorable regulatory environment as a key factor attracting firms from states such as California.
Texas has increasingly become a prime location for corporate operations of leading companies across the United States. Many firms are citing the lower cost of living and favorable conditions for corporations as motivations for migrating to the Lone Star State. For instance, Yum! Brands, the parent company of KFC, revealed in February its plans to transition its US headquarters from Louisville, Kentucky, to dual locations in Plano, Texas, and Irvine, California.
Elon Musk, who heads SpaceX and Tesla and owns X, has also proclaimed that all three companies will establish their headquarters in Texas. The office of Governor Abbott noted that HQ relocations saw a peak during an “acceleration period” in 2020 and 2021, resulting in 121 firms making the move to Texas within that timeframe, with more than half of these relocations coming from California.
Following this surge, the pace has steadied to align with historical trends. In total, 200 companies have relocated their headquarters to Texas since 2020, according to Governor Abbott’s office. As of 2024, 24 additional companies, including Chevron and SpaceX, announced their intentions to set up headquarters in the state.
These relocations are driven by a combination of a “reasonable regulatory environment,” an “exceptional quality of life,” and a lower operational cost for businesses in Texas, according to Abbott’s report. Below is a summary of companies that have shifted their business operations to Texas:
KFC
Yum! Brands, the parent company of KFC, declared in February that it will shift its US headquarters from Louisville, Kentucky, to dual HQs in Plano, Texas, and Irvine, California.
ChelRhon
Chevron is among the latest corporations to relocate to Texas.
In August 2024, Chevron announced its decision to transfer its headquarters from San Ramon, California, to Houston before the year concludes. The energy giant stated that the move would “enable better collaboration and engagement with executives, employees, and business partners.” Previously, Chevron faced lawsuits in California, accused of minimizing the risks associated with fossil fuels. However, Texas Governor Abbott welcomed the company with a tweet: “WELCOME HOME Chevron! Texas is your true home.” Prior to the move, Chevron employed around 7,000 people in the Houston area and 2,000 in San Ramon, with expectations for all corporate functions to operate from Texas by 2029.
X
AECOM announced in 2021 its plans to move its headquarters to Dallas.
A Fortune 500 construction firm, AECOM, decided to relocate its headquarters from Los Angeles to Dallas, citing that Texas is a “talent magnet” for consulting and engineering sectors. CEO Troy Rudd was part of the transition to AECOM’s existing Texas offices from California.
SpaceX
McKesson transitioned to the Dallas-Fort Worth area in 2021.
McKesson revealed its decision to move its headquarters from San Francisco to Las Colinas, Texas, in 2018, with ambitions to transfer most jobs from Silicon Valley to Texas and other key locations by 2021. Four years post-move, CEO Brian Tyler expressed confidence that the city was “absolutely the right community for McKesson to call home,” citing benefits from the diverse talent pool, travel ease, and an engaged business community in Irving.
