Find the Winning Formula for Success in Tennessee

ORNL/U.S. Dept. of Energy

Tennessee is proving that when business advantages align with quality of life, companies across industries take notice. From aerospace and advanced manufacturing to clean energy, agriculture and artificial intelligence, businesses are choosing the Volunteer State and finding fertile ground for growth. 

“What sets Tennessee apart is the overall environment that is welcoming to these businesses, whether they are coming in for the first time or expanding operations,” says Stuart C. McWhorter, deputy governor and commissioner of the Tennessee Department of Economic and Community Development. 

Business Advantages in Tennessee Are Numerous

Decades of sound policy have shaped Tennessee’s business climate. The state’s fiscal responsibility, pro-business policies and lack of a personal income tax create advantages that stand out when companies weigh their investment decisions. 

“We are one of the lowest debt-per-capita states,” McWhorter says. “From an economic development perspective, that means not taxing the business and not putting the burden of fiscal mismanagement onto employers or employees.” 

Workforce development is another priority. Tennessee partners closely with education institutions and employers to ensure a talent pipeline that keeps pace with industry needs. 

That combination is fueling investment across the state. Recent wins include Hyosung HICO’s $157 million expansion in Memphis, BWXT’s $122 million expansion in Erwin, West Star Aviation’s $32 million expansion in Chattanooga and Advanex Americas $11.4 million investment in White House. 

These examples are also evidence of Tennessee’s appeal across sectors. 

Nick Bumgardner

Memphis: Meet the Digital Delta 

Few places embody Tennessee’s evolving economy more than Memphis. Long known as “America’s Distribution Center,” the city is now marketing itself as the Digital Delta, and the strategy is paying off. 

“Moving from that logistics hub and warehousing mindset to a more digital tech posture was a shift, and it did have a lot of people scratching their heads,” says Ted Townsend, president and CEO of the Greater Memphis Chamber. “Is it AI, robotics, EV? My answer is yes, all of those. We’ve always been in that space but just didn’t own it.” 

One of Memphis’ biggest wins came when Elon Musk’s xAI announced a multibillion-dollar investment to build a supercomputer facility. “In one year of operation, xAI became Memphis’ second-largest taxpayer behind only FedEx,” Townsend says. “That kind of presence is helping transform our economy.” 

The momentum extends beyond tech. AAON announced a 787,000-square-foot facility in Memphis to produce advanced HVAC systems. “For companies considering where they should make investments, Memphis is in the conversation,” Townsend says. “We see Memphis being solidified as a global tech hub, a leader in AI, a high-tech manufacturing center and still a global supply chain hub.” 

Energy Innovation in Middle Tennessee 

In Middle Tennessee, Ultium Cells, a joint venture between General Motors and LG Energy Solution, is upgrading its multibillion-dollar EV battery plant in Spring Hill, underscoring Tennessee’s role in clean-energy manufacturing. 

“Tennessee has a long legacy in manufacturing, which has created a strong foundation for innovation and growth,” says Chris Desautels, Spring Hill plant director. Being close to GM’s Spring Hill assembly plant allows for seamless collaboration, while the region’s experienced automotive workforce provides essential talent. 

“Through the state’s investment in talent development and our partnerships with institutions like TCAT, Motlow State and Columbia State, we have access to a highly skilled and adaptable workforce,” Desautels says. “Tennessee offers both the stability and forward-looking vision needed for a project of this scale.” 

The investment extends further beyond automotive. “Our work has the potential to transform transportation across multiple industries, driving change both environmentally and culturally,” Desautels says. 

For employees and families, Desautels notes that Tennessee provides additional advantages. “Along with an affordable cost of living, family-friendly communities, abundant recreation and the benefit of no state income tax, Tennessee offers a higher quality of life.” 

Agribusiness Boom in Coffee County

Massachusetts-based Little Leaf Farms is building its first Southern greenhouse campus in Manchester, a $75 million project bringing over 300 jobs to Coffee County. From Tennessee, the company will deliver fresh greens to grocery stores across the Southeast, Midwest and Texas within 24 to 36 hours of harvest. 

“Our Tennessee greenhouse is designed with sustainable practices at the core,” says Paul Sellew, Little Leaf founder and CEO. “The climate, infrastructure and local workforce all align with our long-term vision. It’s a community that values agriculture, and we’re excited to invest in sustainable food production there.” 

Looking Ahead to a Bright Future

From Memphis’ Digital Delta to Coffee County’s farmlands, Tennessee’s growth is broad and deep. McWhorter points to new opportunities ahead, including nuclear energy. With its mix of fiscal discipline, strategic investments, skilled talent and quality of life, Tennessee is charting a future where businesses and the people who power them can thrive. 

Locate the Right Certified Site

Since 2012, the Select Tennessee Certified Sites Program has helped communities prepare industrial properties for private investment and job creation. The program establishes clear standards, so companies have reliable, detailed information when making location decisions. 

So far, 78 sites across the state have earned certification, giving businesses access to a network of shovel-ready locations that can shorten development timelines. Having access to a shovel-ready industrial site can be the missing component a community needs to land a major project, McWhorter says. 

Certification requires extensive due diligence, from environmental studies to infrastructure capacity, transportation access and regulatory compliance. TNECD provides reimbursable grants to assist communities with site preparation and certification by Austin Consulting Group, ensuring communities across Tennessee can participate regardless of resources.

Recent certifications include sites in diverse locations, from cities to rural communities, demonstrating the program’s commitment to economic development opportunities across all regions of Tennessee. These certified sites give companies confidence in site readiness and help communities compete more effectively for major industrial investments.