Colorado tumbles to No. 25 in CNBC's business rankings

July 10, 2026 - 05:53

Colorado dropped six spots to land at No. 25 in CNBC's annual ranking of state business climates, marking its biggest decline in the infrastructure category. The state, which had held a steady position in the top 20 for several years, saw its infrastructure score fall sharply due to aging roads, strained water systems, and growing congestion along the Front Range. While Colorado still ranks well in categories like workforce quality and access to capital, the infrastructure slide pulled down its overall score. The ranking evaluates states on 10 weighted factors including cost of doing business, economy, and education. Colorado's strength in technology and renewable energy sectors did not offset the infrastructure weakness. State officials noted that recent transportation funding measures, including a new fee on deliveries, have not yet shown results in the rankings. The report also highlighted rising housing costs as a concern for businesses trying to attract talent. Neighboring states like Utah and Arizona moved ahead in the rankings, benefiting from lower costs and faster infrastructure improvements. Colorado's drop serves as a warning that economic growth without matching investment in roads, broadband, and water systems can hurt long-term competitiveness. Business groups in the state are pushing for more aggressive infrastructure spending in the next legislative session.