Phoenix, Arizona: The Next Frontier for French Tech and Business Investment
Introduction
Phoenix, Arizona – the fast-growing “Valley of the Sun” – has emerged as a hotspot for tech innovation and business growth in the United States. Once overshadowed by coastal cities, Phoenix is now attracting major international investments, including from France. In fact, Arizona ranked #1 in the U.S. for foreign direct investment (FDI) in 2022, pulling in nearly $32 billion from overseas companies
. French firms are taking notice, drawn by Phoenix’s booming economy, skilled talent pool, modern infrastructure, and pro-business policies. Below, we explore the key reasons why French companies (especially in tech) should consider investing in Phoenix, and highlight success stories of notable French businesses already thriving there.
Why Phoenix Is an Ideal Investment Destination for French Companies
Thriving Economy and Tech Ecosystem
Greater Phoenix boasts a robust, diversifying economy with a growing reputation in high-tech industries. Landmark projects like TSMC’s $40 billion semiconductor fabs and other mega-investments have put Phoenix on the global tech map
. The region’s innovation ecosystem is thriving: Arizona offers an “ideal business environment… and thriving innovation ecosystem,” making it a go-to location for technology companies globally
. For French tech firms, Phoenix provides access to one of the fastest-growing tech hubs in the U.S., without the sky-high costs of Silicon Valley. The metro area has become “more corporate-friendly, tax-friendly, and affordable” than many coastal markets
, offering companies a chance to scale operations cost-effectively while reaching a large and growing customer base.
Phoenix’s growth trajectory is impressive. The metro consistently ranks among the top in the nation for job creation and population inflows – about 175 new residents arrive daily, drawn by economic opportunity and quality of life
. This booming market translates into expanding business opportunities in sectors like software, semiconductors, renewable energy, aerospace, and more. French businesses can tap into Phoenix’s momentum and pro-growth climate to expand their U.S. footprint.
Skilled Workforce and Talent Pipeline
One of Phoenix’s greatest assets is its abundant talent pool and education pipeline. Greater Phoenix is home to over 40 universities and higher-education institutions that produce a steady stream of educated workers
. Arizona State University (ASU) – with its main campus in Tempe (part of metro Phoenix) – is a powerhouse: ASU’s Ira A. Fulton Schools of Engineering is the largest engineering college in the nation with over 31,000 students enrolled
. ASU is ranked among the top 25 U.S. public universities for engineering
, and it was #13 nationally for producing employable graduates
. This means French tech firms in Phoenix have access to a pipeline of well-trained engineers, IT specialists, and other professionals.
In addition to new graduates, Phoenix’s overall labor market is deep and growing. As workers and tech professionals migrate from higher-cost states, employers benefit from “an abundance of employees and competitive labor costs” in Phoenix
. In practical terms, companies often find that salaries and operating expenses in Arizona are substantially lower than in California or the Northeast, for similarly skilled talent. This combination of quality and affordability of labor gives Phoenix a competitive edge. French businesses can build strong local teams – from software developers to customer support and sales – without breaking their budget. And for specialized needs, Phoenix’s talent base covers industries from aerospace engineering to supply chain logistics, thanks to the region’s diverse economy.
Modern Infrastructure and Connectivity
Phoenix offers the infrastructure and connectivity that international companies need to thrive. Phoenix Sky Harbor International Airport is a major hub with nonstop flights to 23 international markets (as of 2023, a record for the airport)
. This includes direct service to Europe and beyond, making travel between Phoenix and Paris or other European centers relatively convenient. Efficient air connectivity is a big advantage for French firms managing transatlantic operations or welcoming overseas clients.
On the ground, Phoenix’s location in the southwestern U.S. is strategic. The city sits at the crossroads of major trade corridors – connecting easily to California, Texas, and Mexico – which is beneficial for logistics and distribution. Companies can reach the West Coast in a day’s truck drive or a short flight. The region has invested heavily in transportation infrastructure: an extensive highway network, rail freight access, and expanding public transit. Phoenix’s infrastructure also supports the tech industry’s needs; for example, reliable power and telecom networks have attracted numerous data centers and advanced manufacturing facilities to the area
. There’s also plenty of physical space for expansion – industrial parks and greenfield sites around Greater Phoenix accommodate new factories, R&D centers, and offices without the real estate constraints of denser cities. In short, Phoenix can smoothly support growth, whether a company is building a semiconductor plant or a corporate office.
Business-Friendly Climate and Incentives
Arizona consistently ranks as a pro-business state, and its policies have been a magnet for investment. Companies in Phoenix enjoy low taxes and a friendly regulatory climate. The state’s corporate income tax is a flat 4.9% – much lower than California’s 8.84% – and Arizona has been known to streamline regulations to reduce red tape
. For French entrepreneurs used to more complex labor and regulatory regimes, Arizona’s straightforward, business-first approach is refreshing.
Crucially, the state and local authorities offer attractive incentive programs for expanding companies. Arizona provides “aggressive” tax credits and incentives to spur job creation and R&D. For example, there are refundable and nonrefundable corporate income tax credits for qualified research and development activities
. The Arizona Commerce Authority also administers programs like the Quality Jobs Tax Credit (which rewards companies for each new job created) and the Qualified Facility Tax Credit (which offsets capital investment in new facilities) – tools that significantly lower the cost of expansion projects. Moreover, foreign companies can benefit from resources such as foreign trade zones in the Phoenix area, which reduce duties and operating costs for manufacturers and distributors.
State and city economic development teams are highly supportive when recruiting international firms. Organizations like the Greater Phoenix Economic Council (GPEC) and Arizona Commerce Authority actively assist with site selection, permitting, and connecting businesses to local partners. This welcoming environment has not gone unnoticed globally. As Governor Katie Hobbs noted, “news is getting out about what we have to offer” in Arizona
– which is why more than one-third of current prospects in GPEC’s pipeline are foreign companies, a dramatic rise from just a decade ago
. For French companies, this means Arizona will roll out the red carpet to facilitate their investment – from tax breaks to personalized relocation support – making the decision to choose Phoenix even easier.
Success Stories: French Companies Thriving in Phoenix
Phoenix’s advantages aren’t just theoretical – many French companies have already invested and found success in the region. More than 80 French-owned companies operate in Arizona, employing nearly 11,000 people statewide
, and contributing significantly to the local economy. These range from global corporations to mid-sized firms across various industries. Here are a few notable examples of French companies that have established a presence in the Phoenix area, along with why they chose Phoenix and how it’s paid off:
Axway: Relocating a Tech Headquarters for Growth
Background: Axway is a French software company specializing in enterprise data integration and API management. Originally a spin-off of France’s Sopra Group, Axway provides middleware and cybersecurity solutions to businesses worldwide.
Phoenix Investment: In 2006, Axway moved its corporate headquarters from Paris to Phoenix – a bold move underscoring the company’s commitment to the U.S. market
. The Phoenix office (in Scottsdale) became Axway’s main business center, even as the company retained significant operations in France. Axway chose Phoenix to capitalize on the North American tech market’s growth potential, and because the region offered easier access to U.S. clients and talent
. Since anchoring in Phoenix, Axway has continually expanded. By 2015, Axway had grown its Phoenix workforce by about 30%, reaching 270 local employees
(and has continued hiring since). The Phoenix HQ now co-directs a company with over 11,000 customers in 100 countries.
Why Phoenix: Axway’s leadership cited Phoenix’s strong tech workforce and lower costs as key factors. The company found it could hire skilled software developers, engineers, and marketing staff in Phoenix’s growing tech talent pool, while benefiting from a more affordable cost of living (which helps with salary competitiveness). The business-friendly environment was another plus – Phoenix offered Axway room to scale without the high taxes and intense competition of larger tech hubs. As Axway’s SVP of marketing noted, “Phoenix is growing quite a bit, and we are investing heavily in that area”, reflecting confidence in the region
.
Impact: Axway’s Phoenix headquarters has been a success story. The company’s U.S. presence (and revenue) grew substantially after the move, validating the decision. Axway secured major North American clients and even acquired U.S. startups, all managed through Phoenix. The local community benefited as well – Axway’s hundreds of high-tech jobs contribute to Phoenix’s knowledge economy. Axway proves that French tech firms can thrive in Phoenix; its transatlantic structure (with dual centers in Phoenix and Paris) shows how Phoenix can serve as an effective base for global operations.
Transdev: Driving Public Transit in the Valley
Background: Transdev, based near Paris, is one of the world’s largest private transit operators. It runs buses, light rail, shuttles, and other transportation services across 18 countries. In the U.S., Transdev (formerly Veolia Transdev) contracts with cities to manage and operate transit systems.
Phoenix Investment: Transdev entered the Phoenix market in 2007 when it won a major contract with the City of Phoenix to operate bus routes. Transdev operates the City of Phoenix’s fixed-route bus services, running a fleet of over 160 buses and employing roughly 400 people locally to keep the system moving
. This includes drivers, maintenance crews, and support staff. Over the years, Transdev has expanded its role; it now manages all Phoenix bus operations out of two major depots (north and south Phoenix) and even some “Dial-a-Ride” paratransit services for the metro area
. Essentially, Transdev invested in setting up a local operating company in Phoenix, complete with training facilities and management teams, to fulfill its long-term transit contracts.
Why Phoenix: Phoenix in the mid-2000s was rapidly growing and investing in transit infrastructure (the Valley Metro light rail system launched in 2008). The City sought experienced partners to improve public transportation. Transdev saw an opportunity to bring its global expertise to a large American city. Phoenix’s size and car-centric history meant there was great potential to increase transit usage with the right service improvements. By investing in Phoenix, Transdev positioned itself in a major metropolitan market where it could grow as the region’s transit needs expanded. The stable, multi-year contracts also made it a sound investment – providing predictable revenue. Furthermore, Phoenix’s pro-business approach to outsourcing services made it easier for Transdev to establish operations compared to more unionized markets. Transdev leveraged Phoenix’s “safe, accessible, efficient” transit vision to introduce new operational approaches and technology for better on-time performance
.
Impact: Transdev’s presence has had a tangible impact on Phoenix’s mobility. It has helped the city deliver reliable bus service across a sprawling metro, contributing to Phoenix’s broader transportation goals. The company’s nearly 400 local employees represent French investment creating American jobs – drivers, mechanics, and managers earning livelihoods while serving the community. Under Transdev’s management, Phoenix bus ridership and service quality have improved, and the city has been able to expand routes confidently. Transdev often shares best practices (like electric bus pilots and safety programs) honed from its worldwide operations, directly benefitting Phoenix riders. For Transdev, success in Phoenix bolsters its U.S. track record, potentially leading to more contracts in other cities. It’s a win-win example of a French service company thriving abroad: Phoenix gains a world-class transit operator, and Transdev gains a profitable, long-term business foothold in the U.S.
Air Liquide: Fueling Arizona’s Semiconductor Boom
Background: Air Liquide is a French industrial gases giant – a leader in supplying gases like oxygen, nitrogen, hydrogen, and specialty materials for industrial and high-tech uses. In the electronics industry, Air Liquide’s ultra-high-purity gases are critical for semiconductor manufacturing (used in chip fabrication processes).
Phoenix Investment: In January 2022, Air Liquide announced a major investment to support Phoenix’s burgeoning semiconductor sector. The company is investing $60 million to build a new production facility in Phoenix
. This onsite plant will produce and supply ultra-high-purity hydrogen, helium, carbon dioxide, and other gases directly to one of the world’s largest chip manufacturers in Phoenix
. (While not explicitly named, this is widely understood to be the new TSMC semiconductor fab in north Phoenix.) Air Liquide’s investment includes building state-of-the-art gas production units and distribution systems at the customer’s site, with operations that began in late 2022. Essentially, Air Liquide is co-locating its infrastructure to reliably feed the advanced fabs coming online in Arizona. This commitment also expands Air Liquide’s existing footprint in the state – the company already has facilities and pipelines serving the electronics hubs in Phoenix’s East Valley (supporting Intel’s fabs in Chandler), so this new project significantly boosts its capacity in the region.
Why Phoenix: As global tech supply chains shift, Phoenix has become a strategic location for semiconductor manufacturing – and Air Liquide followed its customers. The decision to invest $60 million was driven by client demand (a massive fab that requires a steady gas supply) and by Arizona’s emergence as an electronics hub. Air Liquide’s executive vice-president Michael Graff highlighted that “Air Liquide is proud to support the growth of semiconductor manufacturing in the U.S.” and aims to partner with customers as they expand in “areas such as Arizona, a state where Air Liquide has an established presence and significant infrastructure.”
. In other words, Arizona’s pro-industry environment and existing Air Liquide operations made it a logical choice for expansion. The company knows Arizona is committed to high-tech manufacturing (thanks in part to the CHIPS Act incentives and state-level support), so investing in Phoenix aligns with Air Liquide’s global strategy to grow with its electronics customers.
Impact: Air Liquide’s investment is enabling the success of Phoenix’s semiconductor cluster – an industry that will create thousands of high-paying jobs and put Arizona at the cutting edge of tech manufacturing. By supplying ultra-pure gases, Air Liquide is a critical link in the supply chain for making advanced chips in Phoenix. Economically, the project itself created jobs for plant construction and will create ongoing roles in operations and logistics. It also signals confidence: a French company committing significant capital sends a message that Phoenix is a world-class location for high-tech industry infrastructure. The presence of Air Liquide and other key suppliers helps anchor the semiconductor ecosystem in Arizona, attracting even more companies in the supply chain. For Air Liquide, the payoff is a long-term supply contract and strengthened relationship with a top semiconductor client, plus a stronger foothold in the U.S. market. This symbiotic relationship exemplifies how French industrial investors are contributing to – and benefitting from – Phoenix’s tech boom.
Saint-Gobain: Manufacturing Solar Technology in the Desert
Background: Saint-Gobain, headquartered in France, is a 350-year-old multinational known for its expertise in materials and glass. Among its many divisions, Saint-Gobain has a solar energy business that produces high-performance mirrors for concentrated solar power (CSP) plants.
Phoenix Investment: Saint-Gobain chose Greater Phoenix for a significant renewable energy manufacturing investment. In 2011, the company built its first North American solar mirror factory in Goodyear, AZ (a suburb west of Phoenix)
. This facility was established to produce specialized mirrors for solar thermal power stations, supplying the growing U.S. market for large-scale solar projects
. The plant’s production capacity was designed to support about 300 MW worth of solar power generation per year in mirror output
. The Goodyear factory represented a multi-million dollar investment and created about 50 new manufacturing jobs locally
. Saint-Gobain essentially transplanted some of its cutting-edge glass manufacturing processes from Europe to the Arizona desert – an ideal location, given the region’s abundant sunshine and proximity to solar project sites in the American Southwest.
Why Phoenix: For Saint-Gobain, expanding to Arizona was a strategic move to be closer to customers and projects in the U.S. renewable energy market. “Our decision to expand manufacturing into the United States confirms the importance of this market in our business portfolio,” said Saint-Gobain Solar’s Managing Director when construction began
. Arizona was particularly attractive for several reasons: it has one of the highest levels of solar irradiance (making it a focal point for solar power plants), lots of available land for industrial facilities, and a business-friendly attitude toward clean energy ventures. Goodyear, AZ offered Saint-Gobain an ideal industrial location with good transportation access and a local workforce experienced in manufacturing. Additionally, Arizona’s support for renewable energy (through policies and a growing solar industry cluster) aligned with Saint-Gobain’s corporate commitment to sustainability. The Arizona plant signaled Saint-Gobain’s commitment to innovation in renewable energy and gave it a base to serve solar projects across North America
.
Impact: Saint-Gobain’s solar mirror plant in Phoenix has had both local and broader impacts. Locally, it added manufacturing diversity to the Phoenix area and created skilled jobs in an emerging industry, demonstrating that advanced “green” manufacturing can thrive in Arizona. The plant has supplied components for solar farms, contributing to the growth of renewable energy infrastructure in the U.S. On a broader level, Saint-Gobain’s investment enhanced Arizona’s reputation in clean tech and attracted attention from other renewable energy firms (the state later saw more solar manufacturers and suppliers set up operations). For Saint-Gobain, the success of the Goodyear facility – producing millions of square feet of solar mirrors for projects – validated the choice of Phoenix and has kept the company at the forefront of the CSP market. It also fostered U.S.-France collaboration in clean energy. Saint-Gobain’s century-old legacy combined with Phoenix’s forward-looking economy made for a powerful partnership in the service of solar innovation.
Accor (Fairmont Hotels): Investing in Luxury Hospitality
Background: Accor is a French multinational hospitality company and one of the world’s largest hotel groups. In 2016, Accor acquired the Fairmont, Raffles, and Swissôtel brands, expanding its luxury hotel portfolio. Among these was the Fairmont Hotels & Resorts chain known for high-end properties.
Phoenix Investment: Through its Fairmont brand, Accor has a prominent presence in Phoenix’s tourism sector. The Fairmont Scottsdale Princess resort, a 5-star luxury hotel in Scottsdale (Phoenix area), is under Accor’s ownership/management. This resort, which features 750+ rooms, two PGA-quality golf courses, and extensive conference facilities, has been a crown jewel of Arizona hospitality for decades. Accor’s investment came via the acquisition of FRHI (Fairmont’s parent company), after which it continued to invest in upgrades and expansions at the Scottsdale property. With around 650 employees, the Fairmont Princess is a major employer in the area
. Accor has ensured the resort maintains its AAA Five-Diamond status, catering to upscale leisure travelers and corporate events like the annual Phoenix Open golf tournament and tech conferences.
Why Phoenix: Phoenix – and Scottsdale in particular – is a top U.S. travel destination, known for its year-round sun, golf courses, spas, and desert beauty. For Accor, having a flagship resort in the Phoenix area was strategically important to cement its presence in the North American luxury market. The region’s tourism economy is robust: Phoenix hosts large events (Super Bowl, golf tournaments, international business meetings) and draws visitors from across the U.S., Canada, and Europe during the winter and spring. Accor recognized that the Fairmont Scottsdale Princess had strong fundamentals (high occupancy rates, reputation for excellence) and room to grow with Phoenix’s tourism boom. By investing in property enhancements – new restaurants, renovated guest rooms, expanded meeting spaces – Accor capitalized on increasing demand. The decision also reflects confidence in Arizona’s business travel and convention market; many corporations choose Scottsdale resorts for conferences, and Accor’s Fairmont is a preferred venue. In essence, Phoenix offered Accor a combination of steady luxury leisure business and growing corporate group business, making it an attractive place to deploy capital.
Impact: Under French ownership, the Fairmont Scottsdale Princess has continued to flourish. It has hosted international dignitaries, sports teams, and celebrities, raising Phoenix’s profile as a luxury destination. The resort’s success has a ripple effect: it supports local suppliers (from food & beverage to floral design), and its high-end clientele often explore other Arizona attractions, benefiting the broader economy. The property itself has seen economic benefits like job creation and sustained tourism revenue – it’s consistently one of Arizona’s top-earning hotels. For Accor, the Phoenix investment has paid off in brand visibility and profitability. The company uses the Princess as a model for integrating its global standards with local Southwestern charm, resulting in numerous awards and a loyal customer base. This success story shows that French investment isn’t limited to tech or industry; it extends to hospitality and lifestyle, leveraging Phoenix’s strengths as both a business environment and a travel destination.
Conclusion
Phoenix, Arizona has proven to be fertile ground for French companies across a spectrum of industries. From software and semiconductors to transportation, manufacturing, and hospitality, the region offers a rare combination of economic advantages: a booming innovation-driven economy, ample skilled talent, modern infrastructure, and a business-friendly climate rich with incentives. The experiences of companies like Axway, Transdev, Air Liquide, Saint-Gobain, and Accor validate Phoenix’s value proposition for foreign investors. These firms have not only found opportunity in Phoenix but have also contributed back to the community – creating jobs, spurring innovation, and enriching the local business landscape.
For French businesses considering U.S. expansion, Phoenix is a compelling destination that rivals the traditional hubs in appeal, often with lower costs and fewer hurdles. It’s a place where a French entrepreneur can build a factory or an office and quickly feel at home, thanks to organizations like the French-American Chamber of Commerce and proactive local partners. As GPEC’s CEO noted, Greater Phoenix’s economy is “strengthened by the dynamic relationships” with French companies and other international partners
. In other words, Phoenix wants French businesses to succeed here.
With Arizona’s ties to France growing stronger (reflected in rising trade and new collaborations), now is an excellent time for French companies to seize the opportunity. Whether it’s a tech startup looking for a U.S. base, a manufacturing firm seeking a cost-effective production site, or a service provider targeting a new market, Phoenix offers a welcoming, high-potential environment. The successes highlighted above serve as inspiration – and evidence – that investing in Phoenix can be a savvy move. As Phoenix continues its ascent as an international business hub, French companies can confidently make Phoenix their “home away from home” in the American market, and join in the thriving success story of Arizona’s economy.