By Daily Mail (U.S.) | Created at 2026-08-09 02:21:55 | Updated at 2026-08-09 06:14:27
4 hours ago
The company that helped transform Silicon Valley into the global tech hub it is - or once was - is just one of the many organizations to turn away from California, citing frustration with high taxes and strict regulations.
Hewlett Packard Enterprise (HPE), which traces its origins to a modest garage in Palo Alto, officially moved its global headquarters to Houston, Texas, in 2020.
Even the firm that tracks companies fleeing California joined the exodus itself.
Coldwell Banker Richard Ellis (CBRE), a major US commercial real estate and investment giant, relocated its headquarters from Los Angeles to Dallas in 2020.
HPE's decision sent a pointed signal: even the state’s most iconic tech pioneers are reconsidering their future in California.
The tech firm focuses on enterprise technology, offering solutions in servers, storage, networking, artificial intelligence, container software, and consulting services.
HPE was founded by Bill Hewlett and Dave Packard, who met as students at Stanford University in the heart of Silicon Valley.
In 1939, they began building products in a rented garage, starting with audio oscillators for sound engineers - sometimes even using the Packard family oven to complete their work.
HP focuses on enterprise technology, offering solutions in servers, storage, networking, artificial intelligence, container software, and consulting services
HP traces its origins to a modest garage in Palo Alto (David Packard, left, and William R. Hewlett pose in front of the garage in 1989)
HPE was founded by Bill Hewlett and Dave Packard, who met as students at Stanford University in the heart of Silicon Valley (this picture was taken in 1939 in the garage at 367 Addison Avenue, Palo Alto)
Their early innovations caught the attention of Walt Disney Studios, one of their first major customers, setting the stage for decades of technological leadership.
Texas Governor Greg Abbott welcomed HPE’s relocation, touting Texas as a premier destination for business.
While California remains the most populous US state and one of the largest economies in the world, HPE joins a growing list of companies that have moved operations elsewhere, often pointing to high taxes, regulatory burdens, and rising costs.
Texas, by contrast, has no state income tax, a factor frequently cited as a financial advantage.
One of the latest companies to leave is Public Storage, the largest self‑storage company in the United States, which announced the decision to move its corporate headquarters from Glendale to Frisco in early 2026, marking the end of more than 50 years in California.
Tesla officially moved its corporate headquarters from Palo Alto, California, to Austin, Texas on December 1, 2021.
CEO Elon Musk announced the move at the company’s 2021 annual shareholder meeting, citing better growth, cheaper housing, and issues with California's pandemic-related regulations.
Other major firms - including Chevron, Charles Schwab, Oracle, and Palantir - have also relocated their headquarters from California to Texas in recent years.
Many organizations have turned away from California, citing frustration with high taxes and strict regulations (pictured: Silicon Valley)
HPE officially moved its global headquarters to Houston, Texas, in 2020
Texas is not the only benefitting from California's corporate mass exodus.
In March, Yamaha Motor Corporation announced it will relocate its longtime headquarters from Cypress, California, to Kennesaw, Georgia, after nearly five decades.
The company plans to begin relocating its headquarters in late 2026 and complete the transition by 2028 as it sells its 25-acre Cypress campus and consolidates operations in Georgia.
California's high operating costs and regulatory environment have long been cited by companies considering relocation.
