10 U.S. states best prepared for extreme weather, climate risk in 2025

This 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 latest example of natural disasters becoming increasingly intense.

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

Last year alone, according to the National Oceanic and Atmospheric Administration (NOAA), the U.S. experienced 27 climate-related disasters causing $1 billion or more in damage. The total cost was $182.7 billion. 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 $219.8 billion.

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

“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.

Businesses 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 Business. 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 16.2% 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. We consider each state’s risk of major disasters including flooding, winds, wildfires and smoke, using data compiled for CNBC by the nonprofit First Street Foundation. And, new in 2025, property data firm Cotality scored each state’s resilience to current and future disasters for CNBC, using its propriety data on millions of properties.

We also measure renewable energy in each state using U.S. 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.

These ten states are best equipped to take whatever punches Mother Nature throws at them.

The 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. That is the third highest percentage in the nation. Historically, South Dakota primarily relied on wind energy for much of that power, with 29 wind farms across the state. 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: 46.98%): 45.02%

Properties at risk of major disaster: 36.6%

Average Resilience Score (Scale of 1-100, with 1 being most resilient): 46

Renewable Energy: 62%

With more than 3,200 miles of shoreline touching four of the five Great Lakes, Michigan knows a thing or two about interacting with Mother Nature. The state’s varied climate, including hot and stormy summers and often brutal winters, constantly tests the state’s resilience. It passes those tests with flying colors, according to Cotality, which rates Michigan the third best in the country in hardening properties against climate risks. Gov. Gretchen Whitmer, a Democrat who ran in 2018 on a promise 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.

2025 Infrastructure Score: 231 out of 405 points (Top States Grade: B)

Climate Extremes Index: 53.22%

Properties at risk of major disaster: 9.23%

Average Resilience Score: 4

Renewable Energy: 12.5%

“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. But despite the frequent, triple-digit headlines, Arizona is not America’s hottest state — in fact, it ranks tenth, according to Redfin. Nor is the state’s climate unusually extreme. Arizona has among the nation’s highest percentage of properties at risk from disasters — primarily wildfires — but it is resilient. Democratic Gov. Katie Hobbs’ Office of Resiliency developed the state’s first Extreme Heat Preparedness Plan. It focuses on developing safe and affordable housing, improving emergency response, and expanding the state’s network of cooling centers. The office is also working to develop more renewable energy — a particular challenge in a state with such massive and growing electricity demand.

2025 Infrastructure Score: 279 out of 405 points (Top States Grade: A)

Climate Extremes Index: 39%

Properties at risk of major disaster: 99.14%

Average Resilience Score: 6

Renewable Energy: 21%

The 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. In 2002, Minnesota became the first state to mandate the use of renewable biodiesel fuel. 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. The 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: 53.22%

Properties at risk of major disaster: 14%

Average Resilience Score: 28

Renewable Energy: 35.7%

Renewable energy is in The Hawkeye State’s DNA, but not necessarily in the way you might think. Iowa is the nation’s leading producer of ethanol, and the biggest booster of the corn-based fuel additive. But the state really blows the others away in harnessing the wind. The Energy Department says Iowa is the second largest generator of electricity from wind, after Texas. The state’s Economic Development Authority says that has attracted big energy consumers including Google, Facebook and Microsoft. Iowa has also seen the negative effects of wind, including the 2020 derecho that left thousands without power. Statistically, the state still has little risk of a major disaster. Perhaps as a result, it has done comparatively little to protect itself from climate risks. Rising insurance rates suggest insurers might have some concerns about that.

2025 Infrastructure Score: 221 out of 405 points (Top States Grade: B–)

Climate Extremes Index: 53.22%

Properties at risk of major disaster: 10.6%

Average Resilience Score: 42

Renewable Energy: 65.6%

The Land of Enchantment is uniquely positioned to be a leader in sustainability, with abundant geothermal resources, stiff desert winds, and lots of sunshine. 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. 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 protected, and integrated among the various agencies and stakeholders. The plan may already be paying dividends as the state scores well on resilience.

2025 Infrastructure Score: 201 out of 405 points (Top States Grade: C)

Climate Extremes Index: 39%

Properties at risk from major disaster: 72.9%

Average Resilience Score: 18

Renewable Energy: 59.7%

While The Pine Tree State’s rugged and harsh climate has caused innumerable problems 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. In 2024, the state won a $69 million grant from NOAA under the Bipartisan Infrastructure Law to protect 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. 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 improve water infrastructure along the Pleasant River. 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.

2025 Infrastructure Score: 119 out of 405 points (Top States Grade: F)

Climate Extremes Index: 60.46%

Properties at risk from major disaster: 59.2%

Average Resilience Score: 11

Renewable Energy: 47.2%

With “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 protecting itself, according to Cotality. This year, the state has adopted multiple recommendations to deal with climate challenges, including investing 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: 60.46%

Properties at risk from major disaster: 12%

Average Resilience Score: 9

Renewable Energy: 48.1%

The Centennial State has a well-earned reputation for being environmentally aware. 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. The state is making progress on that goal, but still more than half its power from traditional fuels. The state has a relatively small percentage of properties at risk of a major disaster, but growing wildfire risks have led to higher insurance premiums.

2025 Infrastructure Score: 240 out of 405 points (Top States Grade: B+)

Climate Extremes Index: 39%

Properties at risk of major disaster: 65.4%

Average Resilience Score: 12

Renewable Energy: 47%

The 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 proposal back in 2019, and the state has already surpassed its goal of 50% renewables by 2030. The state has abundant sources of renewable power including wind, solar, geothermal. 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. Nevada has a huge percentage of properties at risk from disasters — primarily wildfires. But the state does extremely well on resilience.

2025 Infrastructure Score 239 out of 405 points (Top States Grade: B)

Climate Extremes Index: 34.64%

Properties at risk of major disaster: 99.7%

Average Resilience Score: 8

Renewable Energy: 64.1%