Charlotte lands among top 20 tech metros in the South, but still trails Raleigh, Durham

More Southern metro states are becoming known for technology, moving the sector's focus beyond traditional hubs like California's Silicon Valley.  

To highlight this growing trend, CommercialCafe conducted a study that ranked the top 20 tech metros in the South. Charlotte made the cut, ranking at No. 12. 

California-based CommercialCafe, an information service and listing source for commercial real estate, scored the metros by looking at nine different performance metrics. Those included the concentration of tech establishments at the metro level, tech establishments' growth, the percentage of tech jobs, tech employment growth, number of patents granted, contributors to patents during five years, the median income of tech workers, median tech earnings growth and a composite life-quality index. 

The Charlotte region rallied a total of 41.16 points, outpacing metros like Nashville, Tennessee, Tampa, Florida, and Savannah, Georgia. One of the area’s highlights was landing sixth on the list for patents approved, outranking Raleigh in that metric. Charlotte had 3,668 tech patents approved between 2018 and 2022.  

The local metro ranked seventh for tech employment growth, driven by a 29.8% hike between 2017 and 2021. Another highlight for Charlotte was landing among the top 10 for tech employment density, scoring 6.55 points on that metric.

Here’s how Charlotte ranked in each of the nine categories: 

But Charlotte still trails behind the other two North Carolina metros that made the list.

Durham ranked at No. 8 overall among the top 20 metros. The area was third-highest in tech company density.

And Raleigh made its way into the top five, landing in fourth place. Commercial Cafe said it's no surprise Raleigh ranked so high, as it's known for its abundance of research institutions, including its reputable universities.

Washington, D.C., dominated the South, taking the No. 1 spot as it rallied the most points for tech establishments and employment densities. The metro has about 13,000 tech companies. D.C. outranked Austin, Texas, which was scored as the second-best tech metro in the South.

Charlotte has been working to become known as a top player in the tech ecosystem. Earlier this year, the area submitted four local bids to the U.S. Department of Commerce's Economic Development Administration to gain formal recognition as regional tech hub.

The move was part of the Tech Hubs program, which is included in the CHIPS Act passed by Congress in 2022. In phase one of the program, only 20 cities will be appointed with the tech hub status. That number will be trimmed down to five to 10 cities in the fall for the second phase, which provides for an infusion of $75 million in federal funding for the local region.