Another corporate giant is trying to quit Delaware for Texas in the latest blow to the blue-state business hub that has dominated corporate America for more than a century.
Dell Technologies has told shareholders it wants to move its legal home to Texas, where the computer giant was founded by Michael Dell in his University of Texas dorm room in 1984.
The company's board has unanimously approved the plan to shift Dell's state of incorporation from Delaware to Texas - putting its legal home in the same state as its longtime headquarters in Round Rock. Shareholders must rubber-stamp it next month.
It is a symbolic victory for Texas and another warning shot for Delaware, which collects roughly $2 billion a year in corporate franchise fees and counts more than 60 percent of the S&P 500 among its incorporated companies
'From my dorm room at the University of Texas in 1984 to our headquarters today in Round Rock, Texas, has given Dell what every great company needs to grow - extraordinary talent, world-class research universities and a business environment that lets us build for the long term,' chairman and CEO Michael Dell said.
'Texas is where Dell has innovated, expanded, and invested for more than four decades, and bringing our legal home to Texas reflects what we've been building here all along.'
Dell is the latest in a long line of Wall Street giants flocking to red states that have lower taxes and lighter regulation.
Austin is already home to major tech companies such as Tesla and Oracle, while Apple, Google, Meta and Amazon also maintain major offices and operations in the city.
Dell Technologies broke the news Monday to their shareholders that they are ditching Delaware for Texas as a growing number of corporations flock to red states with lower taxes and lighter regulations
Austin is already home to major tech companies such as Tesla and Oracle, while Apple, Google, Meta and Amazon also maintain major offices and operations in the city
For many corporations, the biggest appeal of moving a headquarters to Texas comes down to cost savings and a more business-friendly environment.
Texas does not impose a personal state income tax - a major selling point for executives and employees - while companies can also benefit from lower taxes, cheaper land and lower office costs than in blue states such as California or New York.
The state has also built a reputation for lighter regulation and faster expansion opportunities.
Companies looking to construct factories, warehouses, office campuses or data centers often find permitting and development easier and cheaper than in more heavily regulated states.
Dell founders Michael and Susan Dell have also aligned themselves closely with the administration of Donald Trump in recent months.
The couple pledged $6.25 billion in December 2025 to help fund incentives for roughly 25 million American children under the age of 10 to claim new investment accounts created under Trump's sweeping tax-and-spending legislation; further raising the Dell family's profile within Republican political and business circles.
Texas Governor Greg Abbott—a prominent Trump ally—also cheered Dell's decision online; touting the move as further proof that Texas has become one of the country's top destinations for major corporations.
'Welcome home, @Dell. For over 40 years, Texas has been where @MichaelDell built and innovated. Now, Dell Technologies is bringing its legal home to Texas. This is what happens when job creators and innovators are welcomed, not punished. More businesses are sure to follow,' Abbott wrote on X.
Delaware's dominance has increasingly come under pressure in a trend dubbed 'Dexit,' as companies are lured toward Republican-led states offering lower taxes and looser regulations.
Elon Musk's Tesla was one of the first to ditch Delaware after a Delaware judge blocked a massive $55.8 billion compensation package
The shift accelerated after a Delaware judge blocked a massive $55.8 billion compensation package for Elon Musk at Tesla, throwing Delaware's long-standing reputation as the nation's top incorporation destination into question.
Musk responded by moving Tesla's legal home to Texas, encouraging several other billionaire-led firms to consider similar exits.
Since taking office, Matt Meyer has pushed through changes to Delaware corporate law aimed at keeping companies from leaving, including limiting the ability of shareholders to sue company founders.
Businesses pay incorporation fees to states in exchange for legal protections and access to that state's corporate court system in the event of disputes or lawsuits.
In an interview with the Daily Mail in April 2025, Meyer acknowledged the growing threat to Delaware's dominance. 'Delaware had been the global leader in corporate franchise for over 100 years,' he said.
'Before Delaware, New Jersey was the leader and New Jersey lost it because they weren't nimble. They didn't change with the times.'
'There are things we need to do to lead and make sure that we're not just looking in the rear view mirror.'