Minnesota jumps to No. 5 in CNBC business ranking
Minnesota jumped to No. 5 in CNBC's 2026 Top States for Business ranking, a five-spot rise that state leaders say strengthens the case for jobs and investment.[1]
The state rose from No. 10 in 2025 to No. 5 under CNBC's new methodology, which made Infrastructure the heaviest-weighted category at nearly 19% of a state's score.[1] Minnesota ranked No. 4 for quality of life, No. 7 for infrastructure, No. 8 for economy and No. 31 for cost of doing business.[1]
CNBC set Infrastructure at 440 points, citing surging demand for power, data centers and faster permitting as reasons for the change.[1] Minnesota companies announced at least $2.5 billion in expansion projects in 2025, state economic development records show.[1] Notable projects include North Wind's proposed $1 billion testing center at the UMore site in Rosemount and Tract's planned $5 billion technology park in Farmington.[1]
State records show 122 expansion projects in 2025 totaling $3.2 billion in investment, expected to create 2,223 new jobs and retain 3,482 jobs. Reaction on social media was mixed, with some praising CNBC's updated methodology and others questioning the ranking while pointing to high taxes and fraud concerns.
The mainstream summary does not mention the mixed reactions on social media regarding Minnesota's ranking, where some users, like @PatGarofalo and @brisketcooker_3, question the credibility of the list due to the inclusion of states like Illinois and California, which are often viewed unfavorably in business contexts. This skepticism highlights a broader concern about the validity of CNBC's methodology, a perspective that could influence public perception of Minnesota's achievement. Additionally, while the summary emphasizes Minnesota's strong ranking in quality of life, it overlooks critical commentary about high taxes and living costs, which some argue undermine the state's business environment despite its high marks in other categories. @bental_dan specifically points out these challenges, suggesting that the ranking may not fully reflect the realities faced by businesses operating in the state.
Furthermore, the mainstream account does not delve into the implications of the updated methodology that heavily weighs infrastructure, which reflects a significant shift in how states are evaluated. This change indicates a growing recognition among businesses of the importance of infrastructure in making location decisions, as noted in the structural explanation about state competition for investment. The emphasis on infrastructure as a key factor in the rankings could reshape future economic strategies in Minnesota and other states as they respond to this evolving landscape.[2]
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📊 Relevant Data
Minnesota's Department of Employment and Economic Development recorded 122 business expansion projects in 2025 involving $3.2 billion in total investment, expected to create 2,223 new jobs and retain 3,482 jobs.
2025 Business Expansion Projects — Minnesota.gov / DEED
📌 Key Facts
- Minnesota rose from No. 10 in 2025 to No. 5 in CNBC’s 2026 Top States for Business ranking.
- CNBC shifted its methodology so Infrastructure is the most heavily weighted category, accounting for nearly 19% of a state’s overall score.
- Minnesota ranked No. 4 for quality of life, No. 7 for infrastructure, No. 8 for economy, and No. 31 for cost of doing business.
- Minnesota companies announced at least $2.5 billion in expansions in 2025, according to DEED, with major projects in Rosemount and Farmington.
- Among notable projects are North Wind’s proposed $1 billion testing center at the UMore site in Rosemount and Tract’s planned $5 billion, 340-acre technology park in Farmington.
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