The Best and Worst States for Data Engineers in the United States

The Best and Worst States for Data Engineers in the United States

In the age of data, data engineers are among the most sought-after professionals. They build the infrastructure that enables organizations to collect, store, and analyze data efficiently. As the field grows, so does the variety of opportunities available across the United States. However, not all states are equal when it comes to data engineering roles. In this post, we explore the best and worst states for data engineers, taking into account salary, job availability, cost of living, industry presence, and remote flexibility.

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📌 What Does a Data Engineer Do?

Before diving into the geographic breakdown, it’s helpful to quickly revisit what data engineers actually do.

Data engineers design and manage data pipelines, ensuring data is reliable, scalable, and available for data scientists, analysts, and business stakeholders. Their toolbox includes:

• Programming (e.g., Python, Scala, Java)
• Cloud platforms (AWS, Azure, GCP)
• Big data technologies (Spark, Hadoop)
• Data warehousing (Snowflake, Redshift, BigQuery)
• ETL/ELT pipelines
• Infrastructure as code and DevOps practices

Because data engineering touches both software engineering and data analytics, demand is growing—and companies across many industries are competing to hire talent.

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🏆 Criteria for Ranking States

To assess the best and worst states, we look at five key metrics:

1. Average salary for data engineers
2. Number of job opportunities
3. Cost of living index
4. Presence of tech hubs and data-driven industries
5. Remote work friendliness and quality of life

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🥇 The 5 Best States for Data Engineers

1. California

Why it's great:

• Silicon Valley remains the global center of tech innovation.
• Home to Google, Facebook, Apple, Netflix, Uber, and hundreds of startups.
• High salary potential—often over $150,000 annually for experienced engineers.
• Numerous meetups, conferences, and career growth opportunities.

Downsides:

• High cost of living—San Francisco and San Jose are notoriously expensive.
• Housing affordability and taxes can offset the salary advantages.

Remote trend:

• Many companies are hybrid or remote-first now, especially post-2020.

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2. Washington

Why it's great:

• Seattle is a major tech hub—Amazon, Microsoft, and Tableau are based here.
• High salaries: $130,000–$160,000 on average.
• No state income tax.
• Rich ecosystem for cloud computing professionals.

Downsides:

• Cost of living is climbing.
• Rainy, gray winters may affect lifestyle for some.

Remote trend:

• Strong hybrid and remote support due to tech-forward culture.

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3. Massachusetts

Why it's great:

• Boston is a growing hub for biotech, academia, and finance—all data-heavy industries.
• Presence of top schools (MIT, Harvard) fuels innovation.
• High concentration of research labs and AI startups.

Downsides:

• Cost of living is high.
• Harsh winters may deter some.

Remote trend:

• Academic and tech sectors support flexible work.

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4. Texas

Why it's great:

• Austin is booming with tech startups and innovation hubs.
• Low cost of living (relative to CA/WA/MA).
• No state income tax.
• Home to Oracle, Dell, Tesla (relocated HQ), and many enterprise companies.

Downsides:

• Some cities are catching up in infrastructure.
• Heat in summer can be intense.

Remote trend:

• Texas has embraced remote work, with many companies offering flexible options.

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5. Colorado

Why it's great:

• Denver and Boulder are emerging as data/AI centers.
• Competitive salaries and manageable cost of living.
• Lifestyle-friendly: access to nature, skiing, wellness culture.

Downsides:

• Fewer jobs compared to CA/WA, but fast growth.
• Housing market is tightening.

Remote trend:

• Strong adoption of remote-friendly policies.

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🚫 The 5 Worst States for Data Engineers

1. Mississippi

Why it ranks low:

• Very few tech companies or startups.
• Limited job opportunities for data engineers.
• Salaries are significantly lower—often under $90,000.
• Lack of data-heavy industries.

Upsides:

• Extremely low cost of living.
• Could be viable if working remotely for out-of-state employer.

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2. West Virginia

Why it ranks low:

• Minimal demand for data engineering roles.
• Few opportunities outside of government or health care sectors.
• Lower pay, few networking or growth opportunities.

Upsides:

• Scenic rural environment.
• Very affordable lifestyle.

Remote potential:

• Internet connectivity can be spotty in rural areas.

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3. South Dakota

Why it ranks low:

• Lack of major urban tech centers.
• Few local companies investing in large-scale data infrastructure.
• Limited peer community or mentorship opportunities.

Upsides:

• No state income tax.
• Could work well for self-employed or fully remote engineers.

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4. Montana

Why it ranks low:

• Sparse population means fewer businesses overall.
• Startups and tech culture are still emerging.
• High internet costs and infrastructure gaps in rural areas.

Upsides:

• Excellent quality of life and outdoor recreation.
• May appeal to those prioritizing lifestyle over career growth.

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5. Alaska

Why it ranks low:

• Very low job density for data roles.
• Most positions are in energy or government sectors.
• Limited local data engineering community.

Upsides:

• Unique living experience.
• Potential tax benefits and cost offsets.

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📈 Honorable Mentions

These states aren't in the top 5, but deserve a spotlight:

• New York – NYC offers high salaries and opportunities, but cost of living is intense.
• Illinois – Chicago is a strong data hub, especially in finance and logistics.
• Georgia – Atlanta is on the rise with tech startups and data-focused corporations.
• North Carolina – Raleigh-Durham is growing rapidly in data science and analytics.
• Utah – Salt Lake City and Provo are emerging tech hubs with lower costs and good pay.

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📊 State-by-State Summary Table

Rank	State	Avg Salary	Cost of Living	Job Availability	Remote-Friendly	Notes
1	California	$150K+	🔴 Very High	🟢 Excellent	🟢 Yes	High pay, high cost
2	Washington	$140K+	🔴 High	🟢 Excellent	🟢 Yes	No income tax
3	Massachusetts	$135K	🔴 High	🟢 Strong	🟢 Yes	Biotech & education
4	Texas	$125K	🟡 Medium	🟢 Strong	🟢 Yes	Great tax environment
5	Colorado	$120K	🟡 Medium	🟡 Growing	🟢 Yes	Nature and tech blend
...	Mississippi	$85K	🟢 Low	🔴 Poor	🔴 Limited	Low demand
...	West Virginia	$90K	🟢 Low	🔴 Poor	🔴 Limited	Small job pool
...	South Dakota	$95K	🟢 Low	🔴 Low	🟡 Moderate	Quiet job market
...	Montana	$92K	🟢 Low	🔴 Poor	🟡 Moderate	Lifestyle state
...	Alaska	$90K	🟡 Medium	🔴 Very Low	🔴 Limited	Remote & isolated

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💡 Remote Work: The Wild Card

With the surge in remote work, many data engineers can now live anywhere. This changes the game—engineers in low-cost states can still earn high salaries if employed by companies based in California, New York, or Washington.

Best states for remote data engineers:

• Tennessee
• North Carolina
• Arizona
• Florida
• Nevada

These states combine good infrastructure, no or low state income taxes, and growing tech ecosystems.

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🧠 Other Factors to Consider

• Networking: Even remote engineers benefit from local tech meetups and professional networks.
• Education and Training: Proximity to universities or bootcamps can help with reskilling and growth.
• Industry Fit: States with strong finance, healthcare, or logistics sectors often need robust data teams.
• Internet Access: For remote work, reliable and fast internet is critical—rural areas may pose challenges.

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🏁 Final Thoughts

The demand for data engineers continues to rise across the U.S., but where you choose to live can have a huge impact on your career trajectory, income, and lifestyle. States like California and Washington lead the way in terms of job opportunities and salary, but remote flexibility opens doors to live in more affordable places without compromising your career.

So whether you’re looking to maximize earnings, reduce your cost of living, or find the best balance, now is a great time to be a data engineer. Make your move strategically—and consider not just the salary, but the whole picture: job market, taxes, lifestyle, and future growth.

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📣 What Do You Think?

Are you a data engineer working in a state not mentioned here? Have you made a remote move recently that impacted your career? Drop your thoughts in the comments—we’d love to hear your story.

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Written by a data career strategist with deep knowledge of the U.S. tech ecosystem.

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