Related Ross/ServiceNow
The conversation occurred after ServiceNow, a firm that uses artificial intelligence to automate workflows for businesses, revealed it plans to open a regional headquarters and AI Institute in West Palm Beach that will have more than 850 employees by 2030.
Kelly Smallridge, president and CEO of the Business Development Board of Palm Beach County, said ServiceNow is the largest company expansion to West Palm Beach she’s seen in decades. Local and state officials were quick to work with the business to facilitate the expansion, as well.
“They didn’t have time to even consider an alternative location,” said Smallridge, who moderated the conversation between McDermott and Ross.
Ross, the billionaire owner of the Miami Dolphins, was a key part of recruiting ServiceNow to the region, McDermott said. The move is part of Ross’ effort to transform West Palm Beach – already nicknamed the “Wall Street of the South” – into a regional hub for technology ventures. To advance that goal, he recently helped launch a new startup accelerator program focused on growing local financial technology and dual use technology companies.
Ross pointed to Florida’s low taxes, low crime rate and education system – U.S. News and World Report recently ranked the state No. 1 in the U.S. for higher education due to college graduation rates and low tuition fees – as draws for the tech industry. West Palm Beach’s proximity to the wealth of Palm Beach and the addition of institutions such as Cleveland Clinic and Vanderbilt University also demonstrates the city has the infrastructure necessary to attract businesses in the innovation sector.
“When you talk to people from the rest of the country about Florida they might think of Miami, but West Palm Beach is the place that has room to grow,” Ross said.
McDermott said he’s convinced that’s the case. The city’s scenic location, cultural amenities and growing population of younger people are factors that helped persuade him West Palm Beach was a prime spot for the new ServiceNow office.
ServiceNow plans to occupy 200,000-square-feet of space at 10 CityPlace, an office tower under development by Related Ross. The location will house employees focused on product innovation roles, some of who will be hired locally and others who may relocate from California. It will also be home to an AI Institute that will provide AI-focused education, upskilling and certification opportunities for employees, businesses and the local community. The center will feature a startup accelerator space to support early-stage tech companies.
“We’ll probably send people from the state government to ServiceNow for training,” said Gov. Ron DeSantis, who delivered opening remarks at the event.
Both DeSantis and Ross claimed Florida has a low crime rate that makes it attractive to businesses. Recent data from USAFacts suggest incidents of violent crime have been trending downward in recent years and are now lower than the national average. Overall, Florida ranks No. 31 for violent crime nationally. California, the traditional home of the U.S. tech industry, ranked sixth among states for high violent crime rates in 2024 – a concern for many businesses based there.
Tech companies have also become increasingly critical of California because of the state’s high corporate and personal income taxes and strict regulatory environment.
McDermott said he expects ServiceNow’s expansion to South Florida will kick off a trend in tech world.
“If you think about Accenture, IBM, Deloitte, some of them are here, but they’re going to want to be here in numbers that they have not contemplated before,” he said. “I think you’re going to see more companies asking, ”What’s going on in West Palm Beach? And why aren’t I there?'”
