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Why Austin, Texas is Amazon's best choice for its $5 billion HQ2, according to the data

Dennis Green   

Why Austin, Texas is Amazon's best choice for its $5 billion HQ2, according to the data
Finance1 min read

Austin Texas

Sean Pavone/Shutterstock

Austin looks like an ideal place to host Amazon's new HQ.

  • Amazon is searching for a site for its second headquarters.
  • Austin, Texas has emerged as a strong candidate.
  • It offers a low cost of living, supportive business community, and an appealing culture.


Austin is the spot.

The quirky tech hub in the middle of Texas has emerged as a top pick for Amazon's new headquarters, according to an analysis by Moody's.

The analysts looked at a number of factors, including the business environment, real estate prices, tax rates, energy costs, quality of life, the workforce's level of education, and the efficiency of the public transportation system.

Factoring all that in, Austin - where several hundred Amazon employees already work - came out on top.

For its second home, Amazon has said that it is looking for a friendly business environment, a site with proximity to roads and transit, and space for up to eight million square feet of offices. It also requires the site to be near a population center of at least one million people and to be within 45 minutes of an international airport. Amazon has stated that state and local tax incentives will be a major factor in deciding which city gets HQ2.

Amazon said that it received proposals from 238 cities and regions that are in competition for the company's new HQ, which is expected to bring 50,000 jobs and $5 billion in investments to the winning region. Bids were due October 19.

Here are some of the reasons why Austin looks like the top choice.

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