Welcome to the cyber age.
Advancing toward the future.
Alabama’s technology sector is rapidly advancing, with significant growth in software services and cybersecurity activity. The economic output of Alabama’s tech sector has surged by 50% since 2018 and is projected to reach 5.3% of the state’s total GDP by 2030, supported by increasing venture capital investments — $321 million in IT deals in 2023 alone.
$2B+
Data Center Investment
27k+
Computer System Design
and Related Jobs
50%
Tech GDP Growth since 2018
$321M
VC Investments, 2023
Start-up incubators and hubs
Key hubs like Huntsville, Birmingham and Mobile are fostering ventures focused on fields including IT cybersecurity, IoT and AI. Homegrown successes like Shipt and Fleetio highlight the potential of Alabama startups, supported by a statewide incubator network that drives innovation and market alignment.
These developments and more are setting the stage for a new wave of growth in Alabama’s emerging tech sector.
Information technology
IT sub-clusters aligned with local industries have formed around Alabama. Many cybersecurity, IoT and advanced manufacturing-focused IT companies have landed in Huntsville, where their services are used by aerospace and defense industry players.
In Birmingham, healthcare and business management-focused IT companies are growing and are used predominately by the University of Alabama at Birmingham and its growing medical enterprise. In addition, the Mobile area boasts emerging companies using AI and machine learning for data analytics.
A potential for growth.
There has been increasing VC investment activity in Alabama’s tech sector—largely concentrated in software publishing—with $321 million in IT-related VC deals in 2023, up from $74 million in 2022 and just $3 million in 2013. The increase signifies a growing IT startup ecosystem across Alabama and growth potential for home-grown companies to sell their products and services. As much as half of the VC investments in Alabama during the past decade flowed into startups
Incubating startup growth.
Alabama has developed a robust business and tech incubator system that is playing a crucial role in supporting the development of homegrown startups. Birmingham’s Innovation Depot has supported over 100 companies and has been instrumental in the growth of Fleetio and Shipt. The University of Alabama in Huntsville’s Invention to Innovation Center (I2C) supports high-tech startups, including notable SaaS companies such as LunarG and Q-Track. And Auburn University’s Tiger Cage Accelerator has supported numerous student-led startups in biotech and information technology sectors.
Prepping the next generation.
Alabama’s School of Cyber Technology and Engineering (ASCTE), located in Huntsville, is the state’s only public, tuition-free high school dedicated to cybersecurity and engineering. Opened in 2022, ASCTE serves students statewide, integrating rigorous academics with hands-on learning, supported by industry partnerships with companies like Raytheon, Northrop Grumman and Lockheed Martin. Students benefit from internships, mentorships and capstone projects tackling real-world challenges, preparing them for careers in STEM and cybersecurity.
A sweet home for data centers.
Driven by its favorable business climate, strategic location and infrastructure, Alabama is emerging as a key location for data center investments. In 2023, Meta Platforms selected Montgomery as the site for an $800 million data center, building on previous investments in Huntsville. Google operates a $600 million data center in North Alabama. Other companies, including DC BLOX and AuBix, have also made data center investments in Alabama, underscoring the state’s appeal to technology giants seeking robust infrastructure and competitive operational costs.
Image: Meta
Latest Technology News
Core Scientific bringing high-performance computing operation to Auburn
AUBURN, Alabama — Core Scientific Inc., a leader in providing digital infrastructure for high-performance computing, is expanding into Auburn. The company plans to invest $135 million to establish its operation in the existing AUBix data center on West Samford Avenue, with an expected total investment of $400 million.
February 19, 2025
Cyber Strong: Alabama’s innovation ecosystem fuels economic growth
January 23, 2025
Why Alabama?
You can make it here in Alabama.
Alabama is a state of makers, builders, and doers. So, whatever you make or build, you can do it in Alabama. We’re a launching point for aerospace, aviation, and defense. A leader in automotive production. A home for startups, technology, and research breakthroughs. And drawing on our manufacturing roots, we’re helping to usher in the industrial evolution in America.
Logistics & Infrastructure
Alabama’s prime location in the South and on the Gulf Coast grants it nearly unlimited access to the national and international markets. Alabama sits within a one day drive to all of the South and its nearly 150M residents.
Workforce & Training
Alabama’s strong workforce is a major attraction for businesses worldwide, driven by our commitment to skill development. Industry leaders like Mercedes-Benz and Airbus have benefited from on-site training programs in partnership with state workforce agencies; and our state’s focus on education and industrial training through colleges further strengthens Alabama’s appeal to businesses.
Taxes & Incentives
Alabama’s business approach is very inviting, offering global companies incentives, tax benefits, a skilled workforce, and excellent real estate options. Low taxes, affordable utilities, and a reasonable cost of living boost profits, and the state ensure ideal site locations and attractive incentives for long-term success in Alabama.
Project Assistance
Alabama’s Business Development Division actively seeks corporate investors, promotes global expansion for local companies, supports small businesses, and collaborates with various stakeholders for comprehensive investor support. The state also engages with communities to enhance competitiveness and contribute significantly to Alabama’s economic growth strategy, making the state attractive to investors, businesses, and job seekers.