Hewlett Packard Enterprise (HPE), a company whose origins are deeply rooted in the Silicon Valley garage where it began, officially moved its global headquarters to Houston, Texas, in 2020. This relocation signifies a broader trend of organizations departing California, driven by concerns over high taxes and stringent regulations. The move by HPE, founded by Bill Hewlett and Dave Packard, who met as students at Stanford University, underscores a shift for even the most iconic tech pioneers reconsidering their presence in California.
HPE, which focuses on enterprise technology solutions including servers, storage, networking, artificial intelligence, and consulting services, traces its beginnings to a Palo Alto garage in 1939. Their early innovations garnered attention from Walt Disney Studios, one of their initial major clients, setting the stage for decades of technological leadership.
Texas Governor Greg Abbott welcomed HPE's relocation, promoting the state as a favorable destination for businesses. Texas offers a significant financial advantage with its lack of a state income tax, a factor frequently cited by companies seeking to reduce operating costs. California, while remaining the most populous U.S. state and possessing one of the world's largest economies, is experiencing a growing number of companies relocating their operations.
This exodus includes other prominent firms. Public Storage, the largest self-storage company in the United States, announced in early 2026 its decision to move its corporate headquarters from Glendale, California, to Frisco, Texas, ending over 50 years in the state. Tesla officially relocated its corporate headquarters from Palo Alto to Austin, Texas, on December 1, 2021. CEO Elon Musk cited better growth opportunities, more affordable housing, and issues with California's pandemic-related regulations as reasons for the move. Other major companies, such as Chevron, Charles Schwab, Oracle, and Palantir, have also moved their headquarters from California to Texas in recent years.
California's high operating costs and regulatory environment have been cited as long-standing reasons for companies considering relocation. The trend is not limited to Texas, as other states are also attracting businesses leaving California. In March, Yamaha Motor Corporation announced its intention to relocate its headquarters from Cypress, California, to Kennesaw, Georgia, after nearly five decades. The company plans to complete this transition by 2028, selling its Cypress campus and consolidating operations in Georgia.