Gulf South Emerges as a Hub for AI and Industrial Investment in the U.S.

In recent years, the Gulf South region has solidified its status as a pivotal player in the world of artificial intelligence (AI) and industrial investments, drawing a wealth of investment that is reshaping the economic landscape not only within its borders but across the entire nation. The Gulf South Business Roundtable (GSBR) has recently published a comprehensive white paper highlighting the significant role Alabama, Arkansas, Louisiana, Mississippi, and Texas are playing in the U.S. industrial boom and the burgeoning AI sector.

According to a study by CGCN Analytics, the collective investment captured by this five-state region since January 2024 ranges from an impressive $627.7 billion to $720.7 billion. This influx is largely propelled by the competitive industrial electricity prices in the region, which stand at approximately 29% lower than the national average. This financial advantage exists alongside abundant natural resources, a supportive regulatory framework, and a highly skilled workforce, making the Gulf South a unique asset in today's industrial landscape.

Economic Impact

The economic impact of the Gulf South states is significant. While representing only 13.9% of the U.S. population, these states generate 17.0% of the country's manufacturing GDP, 22.0% of its electricity generation, and a staggering 34.9% of total energy production. This clear imbalance illustrates the Gulf South's outsized role in the industrial sector.

Additionally, the area boasts the lowest industrial electricity costs in the nation—with a 2024 weighted average electricity price of just 6.25 cents per kilowatt-hour. In contrast, the national average sits at 8.84 cents per kilowatt-hour, further incentivizing businesses to invest in this region.

Leading Data-Center Construction

The white paper reveals that the Gulf South is not only a powerhouse of energy production but also a leader in data-center construction. Louisiana and Mississippi have ranked second and third nationally for data-center construction starts in 2025, with investments of $15.0 billion and $13.9 billion, respectively. Texas also contributes significantly, ranking fourth at $13.4 billion. This trio of states now holds a significant share of nearly a third—30.6%—of the nation's planned data-center capacity, illustrating their critical role in the digitization and data storage sectors.

Investment Position Index

The Gulf South states rank highly on the newly developed Investment Position Index, which combines various factors like industrial opportunity and data-center power readiness. Notably, Texas ranks first in the country, with four of the five Gulf South states making it into the top 20, showcasing the region’s appeal to investors and businesses alike.

The GSBR is working closely with decision-makers to enhance this competitive edge by focusing on energy affordability and developing a robust workforce that spans state lines rather than being confined to individual states. The white paper emphasizes the need for strategic planning around digital infrastructure, industrial corridors, and supply chains that support AI hardware manufacturing and related industries.

Future Prospects

As we look ahead, the Gulf South's trajectory appears promising. The commitment to maintaining affordable energy costs while fostering a skilled workforce and modernized infrastructure positions the region as a critical stakeholder in the AI and industrial sectors. The findings of the white paper signify not just the economic power of the Gulf South but also its potential to influence industrial trends nationally.

For detailed information on state-by-state investment profiles and a comprehensive review of energy affordability in the Gulf South, interested parties can access the full document at GSBR White Paper.

About the Gulf South Business Roundtable

The Gulf South Business Roundtable is a prominent nonprofit organization led by executives aimed at boosting economic competitiveness across Alabama, Arkansas, Louisiana, Mississippi, and Texas. Beyond simply facilitating economic growth, the GSBR strives to influence policy on federal and regional levels, prioritize infrastructure needs, and establish alliances that lead to long-term sustainability and advancement in the Gulf South.

For additional inquiries or media relations, please reach out to Elizabeth Boney at [email protected].