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These 10 states are America's best prepared for extreme weather, climate risks

July 22, 2025
03:07 PM
13 min read
AI Enhanced
financialrenewable energyinfrastructuremarket cyclesseasonal analysisclimate-related risks

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Extreme storms and other natural disasters are increasingly costly. These ten states are best equipped to take whatever punches Mother Nature throws at them.

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13 min read

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real estate

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Published

July 22, 2025

03:07 PM

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CNBC

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Key Topics
financialrenewable energyinfrastructuremarket cyclesseasonal analysisclimate-related risks

Extreme storms and other natural disasters are increasingly costly, with nearly as many events last year as in all of the 1980s

Companies consider climate risks when deciding where to locate or expand their operations

CNBC’s annual competitiveness study, America’s Top States for, scores every state for sustainability, including risk management and renewable energy (an important development)

At the same time, Solar power Plant outside of Las Vegas, Ivanpah Solar Plant from air, Nevada, given the current landscape

Joe Sohm | Visions of America | Universal Images Group | Getty ImagesThis month's horrific flooding in Texas Hill Country, which killed at least 135 people when the Guadalupe River rose to unprecedented heights — at unprecedented speed — is the example of natural disasters becoming increasingly intense

And beyond the unfathomable human toll, the costs to consumers and es are surging

Last year alone, according to the National Oceanic and Atmospheric Administration (NOAA), the U

Moreover, Experienced 27 climate-related disasters causing $1 billion or more in damage (noteworthy indeed)

The total cost was $182, in light of current trends

Adjusting for inflation, the agency says that is nearly as much as the entire decade of 1980 to 1989, when the nation experienced 33 disasters at a total cost of $219

Furthermore, The Council of Insurance Agents and Brokers, an industry trade group, says commercial perty casualty insurance premiums have risen every quarter for more than seven years

Moreover, Owner's insurance premiums are expected to rise 8% on average this year, and as high as 28% in Louisiana, as insurance carriers price in the risk, according to online insurance marketplace Insurify, amid market uncertainty. "We've seen the biggest effect from severe weather events, and a really steep increase in the number and severity of these weather events, often exacerbated by climate change, that have done huge damages across the country," said Chase Gardner, Insurify's data insights manager

Nevertheless, Es consider these risks as well when deciding where to build new facilities and expand existing ones

So, CNBC factors sustainability into our annual rankings of America's Top States for

We consider climate risks — and the states' efforts to manage them — as part of the study's broader Infrastructure category, the second most important this year, worth 16, given the current landscape. 2% of a state's overall score

To gauge each state's sustainability, we consider NOAA's Climate Extremes Index, which measures regional data on storms, precipitation, heat and drought, given current economic conditions

We consider each state's risk of major disasters including flooding, winds, wildfires and smoke, using data compiled for CNBC by the nonfit First Street Foundation

And, new in 2025, perty data firm Cotality scored each state's resilience to current and future disasters for CNBC, using its priety data on millions of perties, considering recent developments

We also measure renewable energy in each state using U

Department of Energy data

President Trump's signature tax and spending bill slashes clean energy funding even as demand for electricity soars

That could give an edge to states that already have that infrastructure in place

Market analysis shows se ten states are best equipped to take whatever punches Mother Nature throws at them

South DakotaAcciona Windpower 1. 5 MW wind turbine generators are seen on Tatanka Wind Farm in Brandt, South Dakota, U

Bing Guan | ReutersThe Mount Rushmore State is a leader in renewable energy

Roughly two-thirds of the state's power last year came from renewable sources, according to the Energy Department (which is quite significant)

That's the third highest percentage in the nation, in this volatile climate

Furthermore, Historically, South Dakota primarily relied on wind energy for much of that power, with 29 wind farms across the state, given the current landscape

But now, the state's focus on renewables is expanding

In January, the South Dakota Wind Energy Association changed its name to the South Dakota Renewable Energy Association, advocating for solar power, hydrogen, biofuels and energy storage in addition to wind. 2025 Infrastructure Score: 197 out of 405 points (Top States Grade: C)Climate Extremes Index (National Average: 46. 02%perties at risk of major disaster: 36 (something worth watching)

However, 6%Average Resilience Score (Scale of 1-100, with 1 being most resilient): 46Renewable Energy: 62%9

MichiganIce builds up along a pier on Lake Michigan on February 18, 2024 in St

Scott Olson | Getty ImagesWith more than 3,200 miles of shoreline touching four of the five Great Lakes, Michigan knows a thing or two interacting with Mother Nature

On the other hand, The state's varied climate, including hot and stormy summers and often brutal winters, constantly tests the state's resilience

On the other hand, It passes those tests with flying colors, according to Cotality, which rates Michigan the third best in the country in hardening perties against climate risks

Gretchen Whitmer, a Democrat who ran in 2018 on a mise to "fix the damn roads," signed a sweeping, $5 billion infrastructure plan in 2022 that included $66 million to make the state transportation system more resilient to flooding

Moreover, 2025 Infrastructure Score: 231 out of 405 points (Top States Grade: B)Climate Extremes Index: 53. 22%perties at risk of major disaster: 9, in today's market environment. 23%Average Resilience Score: 4Renewable Energy: 12

ArizonaA billboard displays a temperature of 118 degrees Fahrenheit (48 degrees Celcius) during a record heat wave in Phoenix, Arizona, in light of current trends

Fallon | AFP | Getty Images"It's a dry heat," the saying goes in The Grand Canyon State, though some Arizonans will also note that the statement also applies to a blast furnace

Additionally, But despite the frequent, triple-digit headlines, Arizona is not America's hottest state — in fact, it ranks tenth, according to Redfin

Additionally, In contrast, Nor is the state's climate unusually extreme

Arizona has among the nation's highest percentage of perties at risk from disasters — primarily wildfires — but it is resilient

Katie Hobbs' Office of Resiliency developed the state's first Extreme Heat Preparedness Plan

It focuses on safe and affordable housing, imving emergency response, and expanding the state's network of cooling centers

At the same time, The office is also working to develop more renewable energy — a particular challenge in a state with such massive and growing electricity demand, in this volatile climate. 2025 Infrastructure Score: 279 out of 405 points (Top States Grade: A)Climate Extremes Index: 39%perties at risk of major disaster: 99, in this volatile climate. 14%Average Resilience Score: 6Renewable Energy: 21%7

Furthermore, MinnesotaThis machine, which is hitched to a trailer and taken to a wastewater treatment facility in Rosemount, converts pond scum into biodiesel, at the Biosystems and Agricultural Engineering Building in St

Paul, Minnesota, in light of current trends

Ellen Schmidt | The Minnesota Daily | APThe Land of 10,000 Lakes faces thousands of climate risks, from extreme heat to extreme cold, wildfires, tornadoes, blizzards and more

But Minnesota is at relatively little risk of suffering an extreme disaster, according to First Street's data (which is quite significant)

Moreover, In 2002, Minnesota became the first state to mandate the use of renewable biodiesel fuel, given current economic conditions

The law, which took effect in 2005, requires that diesel fuel contain at least 2% biodiesel — made from soybean oil, corn oil or waste oil (noteworthy indeed), in today's market environment

This analysis suggests that required ratio goes up as high as 20% in the spring and summer months. 2025 Infrastructure Score: 258 out of 405 points (Top States Grade: A–)Climate Extremes Index: 53 (noteworthy indeed). 22%perties at risk of major disaster: 14%Average Resilience Score: 28Renewable Energy: 35

IowaPower generating wind turbines tower over the rural landscape on July 5, 2025 near Pomeroy, Iowa

Scott Olson | Getty ImagesRenewable energy is in The Hawkeye State's DNA, but not necessarily in the way you might think, considering recent developments

However, Iowa is the nation's leading ducer of ethanol, and the biggest booster of the corn-based fuel additive

But the state really blows the others away in harnessing the wind

Market analysis shows Energy Department says Iowa is the second largest generator of electricity from wind, after Texas

Additionally, The state's Economic Development Authority says that has attracted big energy consumers including Google, Facebook and Microsoft, in today's financial world

However, Iowa has also seen the negative effects of wind, including the 2020 derecho that left thousands without power

Meanwhile, Statistically, the state still has little risk of a major disaster

Perhaps as a result, it has done comparatively little to tect itself from climate risks

At the same time, Rising insurance rates suggest insurers might have some concerns that

Furthermore, 2025 Infrastructure Score: 221 out of 405 points (Top States Grade: B–)Climate Extremes Index: 53, in this volatile climate. 22%perties at risk of major disaster: 10, given current economic conditions. 6%Average Resilience Score: 42Renewable Energy: 65, in today's financial world

New MexicoThe Roswell and Chaves County Solar Energy Centers is the largest solar ject in New Mexico

Nevertheless, Jim West | UCG | Universal Images Group | Getty ImagesThe Land of Enchantment is uniquely positioned to be a leader in sustainability, with abundant geothermal resources, stiff desert winds, and lots of sunshine, in light of current trends

Nevertheless, New Mexico is taking advantage of all of that to generate nearly two-thirds of its electricity from renewable sources — the fourth highest percentage in the country

The regional climate is less extreme than in many parts of the country, though New Mexico does face some elevated risks from fires and floods

Nevertheless, On the other hand, Last year, the state adopted a comprehensive resilience strategy to address climate risks

The document calls for those responses to be flexible as conditions change, inclusive so that all communities are tected, and integrated among the various agencies and stakeholders

However, Moreover, The plan may already be paying dividends as the state scores well on resilience (an important development). 2025 Infrastructure Score: 201 out of 405 points (Top States Grade: C)Climate Extremes Index: 39%perties at risk from major disaster: 72, in light of current trends. 9%Average Resilience Score: 18Renewable Energy: 59, in today's market environment

On the other hand, MainePleasant River in Vinalhaven, Maine

However, Dypics | Istock | Getty ImagesWhile The Pine Tree State's rugged and harsh climate has caused innumerable blems for its power grid, making it this year's worst state for infrastructure, Maine has otherwise made great strides in mitigating its many climate risks

Conversely, In 2024, the state won a $69 million grant from NOAA under the Bipartisan Infrastructure Law to tect the state's working waterfronts from the effects of climate change

However, a related grant is at risk, allegedly caught up in the feud between President Trump and Gov

Additionally, Janet Mills over the state's policies on transgender women's participation in school sports

The state sued the Trump administration after it pulled a $9 million grant under the infrastructure law to restore salt marshes and imve water infrastructure along the Pleasant River (this bears monitoring)

The suit alleges that while NOAA said it was terminating the grant because it no longer aligns with agency priorities, the real reason was an "arbitrary and capricious" retaliation against the state, in this volatile climate. 2025 Infrastructure Score: 119 out of 405 points (Top States Grade: F)Climate Extremes Index: 60. 46%perties at risk from major disaster: 59, in this volatile climate. 2%Average Resilience Score: 11Renewable Energy: 47

VermontA view of the fall foliage colors at the lake at Elmore State Park as the fog recedes at sunrise in Lake Elmore Vermont, considering recent developments

In contrast, Fruchtman | Getty ImagesWith "green" right there in its nickname, it should come as little surprise that The Green Mountain State does well on sustainability

Even though Vermont sits in the region of the country with the most extreme climate, according to NOAA, the state is among the best at tecting itself, according to Cotality

This year, the state has adopted multiple recommendations to deal with climate challenges, including in municipal infrastructure, supporting land use that takes the climate into account, and reducing climate-related pollution. 2025 Infrastructure Score: 171 out of 405 points (Top States Grade: D+)Climate Extremes Index: 60, in light of current trends. 46%perties at risk from major disaster: 12%Average Resilience Score: 9Renewable Energy: 48

ColoradoAn array of solar panels atop Expedient's data center in Centennial, Colorado, on May 12, 2025

Rj Sangosti | MediaNews Group | The Denver Post | Getty ImagesThe Centennial State has a well-earned reputation for being environmentally aware, given the current landscape

Additionally, Colorado is in the top ten for renewable energy in its power grid

The state has set out to reduce its greenhouse gas emissions to net zero by 2050

An important tool to make that happen is using more renewable energy

Moreover, The state is making gress on that goal, but still more than half its power from traditional fuels

The state has a relatively small percentage of perties at risk of a major disaster, but growing wildfire risks have led to higher insurance premiums, given the current landscape. 2025 Infrastructure Score: 240 out of 405 points (Top States Grade: B+)Climate Extremes Index: 39%perties at risk of major disaster: 65

Additionally, 4%Average Resilience Score: 12Renewable Energy: 47%1 (something worth watching)

On the other hand, NevadaThe Hoover Dam is seen from the Mike O'Callaghan - Pat Tillman Memorial Bridge over the Colorado River on March 14, 2025 in Boulder City, Nevada

At the same time, Kevin Carter | Getty ImagesThe Silver State sets the gold standard for renewable energy use, helping to make Nevada America's most sustainable state in 2025

Nevada's Public Utilities Commission first set a standard for renewables in the state's energy posal back in 2019, and the state has already surpassed its goal of 50% renewables by 2030, given current economic conditions

On the other hand, The state has abundant sources of renewable power including wind, solar, geothermal (which is quite significant)

However, And, of course, it is rich in hydroelectric power, nearly all of it coming from the Hoover Dam, which sits on the Nevada-Arizona border (which is quite significant)

Furthermore, Nevada has a huge percentage of perties at risk from disasters — primarily wildfires

Moreover, Furthermore, But the state does extremely well on resilience (which is quite significant)

Nevertheless, 2025 Infrastructure Score 239 out of 405 points (Top States Grade: B)Climate Extremes Index: 34 (this bears monitoring), given current economic conditions

However, 64%perties at risk of major disaster: 99

Moreover, 7%Average Resilience Score: 8Renewable Energy: 64

Moreover, 1%America's Top States for 2025: The full rankingsScott CohnThese 10 states have the worst infrastructure in America in 2025Scott CohnThese 10 states offer buyers and sellers the most stable housing in AmericaScott CohnRead More.