There is a huge IT market in the U.S., where a quarter of the $3.8 trillion dollar industry resides. Currently IT companies account for 7.1% of total U.S. GDP and occupy a major role in markets as more and more companies continue to purchase cloud based products. But innovation isn’t just happening on the coasts. It’s starting to happen more and more in the Middle Corridor of the United States as tech companies continue to develop.

Intel invests 7 billion in Arizona

In a commitment to developing operations in the U.S., Intel has committed to investing 7 billion in the Middle Corridor in Arizona.

The increased investment in their factory comes about partially as a result of what Intel anticipates will be reduced regulation and a better tax policy for the company domestically. But the investment also comes in an area that is quickly becoming one of the bigger information services areas in the country.

Arizona’s Status as Growth Area for Information Technology

According the US Bureau of Labor Statistics, the state of Arizona had the third largest job growth in the U.S. in 2014. The growth hasn’t stopped, and Arizona was named the third best spot for IT jobs in the country behind only San Francisco and Silicon Valley. Employees are quickly finding that the cost of rent is much lower in a city like Phoenix, where rent is only about $1000 a month on average, more than half the cost of rent in a city like San Francisco.

Companies like Apple, GoDaddy, and now Intel are trying to take advantage of the favorable workplace conditions and lower costs by continuing to expand operations there. The Information Technology sector is thriving there as tech companies continue to see the value in making a move toward the Middle Corridor. But Arizona isn’t the only place where information technology is growing.

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Indiana’s Status as a Tech Hub.

Indiana is gaining traction as one of the top states for tech talent and production. The region generated almost $5 billion dollars worth of exit value in the past ten years and continues to be a hub for top talent in the U.S. In the city of Indianapolis, startups and entrepreneurs are founding and starting businesses thanks to the city’s favorable business conditions.

One of those conditions is the favorable tax situation in the state, which ranks 8th among all active states according to the Tax Foundation. New York and California rank toward the bottom of the list as states with complicated tax laws that are also quite expensive. The second and most important factor is the people of Indiana. Those who choose to work in Indiana often stay there instead of leaving after a company has paid to train employees, offering a much lower attrition rate than a city like San Francisco would. And people don’t have to pay nearly as much rent in a city like Indianapolis at less than $1000 per month for a one bedroom apartment. That makes the cost of living for employees much lower.