Top States and Projects Fueling Life Sciences Growth in 2025

Life sciences continues its upward trajectory in the U.S., fueled by innovation in artificial intelligence (AI), advancements in biotechnology, and growing global demand for affordable, effective healthcare. From pharmaceutical production to medical device innovation, the sector is expanding across multiple fronts and showing no signs of slowing down.

In the past 12 months alone, 159 life sciences projects have been publicly announced across the country, totaling more than $7.1 billion in capital investment and nearly 12,000 new jobs. New and expanding facilities in manufacturing, distribution, and R&D continue to experience strong growth, demonstrating that the life sciences sector remains a magnet for major investment.

What’s driving site selection in life sciences?

Life sciences manufacturers have always had specialized needs, but several site selection factors are standing out in 2025:

• Workforce and Educational Infrastructure: These companies require highly educated, highly skilled talent, often with specific certifications or advanced degrees. That’s why proximity to research universities, medical schools, and technical training programs remains a top consideration. Areas with established partnerships between industry and academia are increasingly emerging as leaders.
• Supply Chains: Reliable access to specialized suppliers and temperature-controlled logistics is essential for many life sciences operations, particularly in biopharma and medical device manufacturing. Proximity to cold storage infrastructure, packaging facilities, and transportation networks helps ensure product integrity and keeps production on track.
• Quality Over Quantity Regarding Utilities: While many life sciences operations are not heavy utility users in terms of volume, quality matters a great deal, especially in biopharma and biotech manufacturing. Facilities often require ultra-purified water and stable, redundant power sources. Communities that can guarantee water quality and consistent infrastructure are seeing increased interest.
• Shovel-Ready Sites and Speed-to-Market: As with other advanced manufacturing sectors, life sciences companies are moving fast. Projects are increasingly drawn to sites that are pad-ready, permitted, and supported by expandable infrastructure. These projects often operate on firm R&D and FDA approval timelines, so eliminating barriers on the front end is critical.

Regional trends in life sciences manufacturing

The life sciences landscape is still anchored by well-known hubs like Boston’s biotech corridor and North Carolina’s Research Triangle Park (RTP). These clusters offer deep talent pools and decades of investment in universities and R&D infrastructure, but also come with rising costs and growing space constraints. 

Another anchor location, Lehigh Valley, Pennsylvania, has also emerged as a magnet for life sciences manufacturing, supported by a rich labor pool, long-standing research assets, and access to Northeast markets. Like Boston and RTP, increasing pressure from industrial real estate and rising costs are pushing companies to weigh cost versus access carefully.

Major investments by state

IncentivesFlow provided the data for the map below, which highlights the amount of life sciences with major investments or jobs created by state.

As real estate tightens and labor competition intensifies in these top-tier markets, more companies are exploring affordable locations within established ecosystems or branching into adjacent regions. The following are some key geographic trends for these projects:

• North Carolina’s second-tier markets (e.g., Wilson and Charlotte) are drawing new investment thanks to statewide workforce assets and a track record of life sciences success.
• Indiana is leveraging its research institutions and logistics infrastructure to grow its biotech footprint beyond Indianapolis.
• South Carolina and Kentucky offer cost-effective alternatives with proximity to critical infrastructure, like cold chain logistics (UPS in Louisville) and access to East Coast and Midwest markets.
• The Midwest, including Ohio, Michigan, and Minnesota, is benefiting from its existing pharmaceutical base, expanding cold storage capabilities, and strong educational institutions.

These regional trends suggest that companies are prioritizing a balance between workforce quality, cost containment, and speed to operation.

Trending incentive types in 2025

Operational needs still dominate site selection, but targeted incentive packages remain a powerful tool in tipping decisions. Among the most popular in the life sciences sector:

• Property Tax Relief: Still the go-to for large capital investments, particularly where real estate costs are high.
• Infrastructure Assistance: Grants or in-kind support for site preparation and utility upgrades help make technically demanding sites viable.
• Workforce and Job Grants: Especially valuable in rural or emerging markets where talent attraction and retention are top priorities.

Five life sciences projects to watch

The following investments highlight where the sector is heading toward high-value, high-skill, innovation-driven growth:

1. Johnson & Johnson (Wilson, NC): A $2 billion investment to build a pharmaceutical campus focused on innovative biologics, creating 420 high-wage jobs.
2. GSK (Marietta, PA): A major expansion of its vaccine and medicine manufacturing facility, doubling capacity and adding 200 jobs through an $800 million investment.
3. Roche Diagnostics (Indianapolis, IN): A $550 million expansion creating 650 jobs to enhance pharmaceutical manufacturing capabilities.
4. Organogenesis (Smithfield, RI): A 122,000-square-foot regenerative medicine facility that will add 103 jobs beginning in 2026.
5. Danisco US (Cedar Rapids, IA): A $68 million expansion to its food-grade manufacturing operations, with a focus on bio-based solutions and enzyme development.

Outlook: What’s ahead in the next six months?

As demand for next-gen healthcare solutions grows, so does the pressure on manufacturers to expand quickly, efficiently, and strategically. However, available land, utility capacity, and talent pipelines are tightening in traditional hubs, forcing companies to take a closer look at new markets.

The most successful life sciences projects in 2025 will be those that:

• Prioritize areas with advancing workforce assets but a favorable cost structure
• Explore creative, operation-specific incentive opportunities
• Move quickly to secure ready-to-develop sites with clear development timelines

At Site Selection Group, we help life sciences companies evaluate these variables with precision, guiding toward cost-effective, future-ready locations built for long-term growth.