Hawaii‘s technology industry has blossomed from the first telecom infrastructure built in the late 1800s into a vibrant tech hub fueling innovation across the islands. Once primarily reliant on tourism, Hawaii now derives over 16% of its $93 billion GDP from science and tech-based sectors according to the state‘s Department of Business, Economic Development and Tourism.
Employing over 37,000 high-skilled professionals with an economic impact exceeding $8 billion, Hawaii has successfully cultivated a technology ecosystem. Software, aerospace, defense, sustainability, oceanic engineering, agriculture technology, and digital healthcare comprise growing niche industries as startups choose Hawaii not just as a place to live, but also to locate their disruptive ventures.
Hawaii attracts founders and talent searching for an unparalleled island lifestyle paired with accessible early-stage capital. Over $150 million was invested into Hawaiian tech startups during 2020 alone according to reports, outpacing broader economic growth. Significant infrastructure upgrades, premier research institutions like University of Hawaiʻi, supportive government policies, and a culture embracing innovation have all fueled momentum.
While Hawaii‘s tech sector does not rival Silicon Valley yet in scale and dominance, the state offers unique differentiators from the congested mainland hubs that appeal to specialized segments. Analyzing both established and emerging science and technology companies making waves across Hawaii reveals how the island paradise merges progress with tradition.
Foundational Telecom Networks Powering the Digital Economy
Modern internet speeds, mobile connectivity, multimedia services, and limitless long-distance calling all trace their origins back to early telephone infrastructure established by pioneers in Hawaii well over a century ago.
| Company | Founded | Services | Revenue | Employees |
|---|---|---|---|---|
| Hawaiian Telcom | 1883 | Phone, Internet, TV, Business Solutions | $427 million | 1,300 |
| Hawaiian Electric Company | 1891 | Electricity Generation, Transmission, Distribution | $2.8 billion | 2,200 |
These two foundational telecom and utility monopolies, Hawaiian Telcom and Hawaiian Electric Company, fueled economic growth for decades. While facing more competition today, the companies still maintain dominant statewide market share in their respective industries with infrastructure enabling society and business to function.
Hawaiian Telcom – Connecting the Islands Since 1883
Now in its 140th year of continuous operation after evolving from small independent phone networks on Hawaii, Maui and Oahu into a consolidated provider, Hawaiian Telcom offers modern connectivity. Headquartered in Honolulu with over 1,300 employees, Hawaiian Telcom went public on NASDAQ with a $300 million IPO in 2005 before being taken private again under new ownership in 2018 at a $650 million valuation.
Landline phone service formed Hawaiian Telcom’s bedrock offering for generations. However, adapting with the times, Hawaiian Telcom now generates most revenues from next-generation television, broadband internet and cloud solutions for consumers and enterprises. By investing over $425 million in fiber optic infrastructure upgrades this decade and acquiring rival Oceanic Time Warner Cable in 2016, Hawaiian Telcom can deliver gigabit internet speeds to over 90% of the state’s population.
“We are committed to providing Hawaii with a state-of-the-art network over which residential and business services can be offered well into the future,” says Hawaiian Telcom President and GM Su Shin. Even remote areas of Hawaii receive service from Hawaiian Telcom’s island-hopping undersea fiber cables and satellite earth stations.
Hawaiian Electric Company – Powering Hawaii Since 1891
With no state-wide power grid interconnecting the islands, each Hawaiian isle maintains its own isolated electricity system with limited spare generation capacity. Hawaiian Electric Company (HECO) oversees power production and distribution across Oahu, Maui County, and Hawaii Island serving over 460,000 residents and businesses. HECO meets peak energy demands through a mix of thermal, hydroelectric, wind and solar sources.
While historically relying upon fuel oil and diesel generators causing high customer electricity prices, Hawaii has mandated an aggressive push toward 100% renewable energy integration by 2045. By investing over $1 billion into modernizing aging generators and installing large-scale wind and solar projects, HECO reduced fossil fuel dependence from over 95% in 2008 down to just 63% in 2021. Broader use of rooftop solar panels, utility-scale battery storage systems and electric vehicles further propels Hawaii’s renewable energy transformation.
Modern Tech Giants Driving Cutting-Edge Innovation
Looking beyond the infrastructure providers powering Hawaii’s foundational connectivity and electricity needs, several science and technology heavyweights operate research centers and strategic operations in the island chains. Attracted by untapped talent and favorable geographic advantages like proximity to Asia-Pacific, these key players conduct game-changing development.
Pacific International Space Center for Exploration Systems (PISCES)
Headquartered in Hilo on Hawaii Island, PISCES conducts applied research into deep space exploration technologies. Funded by over $10 million in state grants and commercial partnerships annually, PISCES was founded in 2007 as a state agency demonstrating Hawaii‘s capabilities supporting space industry innovation.
By researching how to extract vital resources for life support from extraterrestrial soils and developing next-generation spacesuits tailored for Mars, PISCES aims to enable extended human presence for future interplanetary colonization. Located far from city light pollution with cleared airspace, Hawaii provides an ideal environment. PISCES now employs over 175 highly-skilled staff across science, engineering and commercialization roles.
Pacific Disaster Center (PDC)
Using advanced geospatial data feeds and proprietary predictive analytics algorithms, Pacific Disaster Center (PDC) helps governments and aid agencies better prepare for, swiftly respond to, and effectively recover from natural and manmade disasters.
Founded 25 years ago and headquartered in Maui with a 50+ person applied science and technology team, PDC’s unique offerings are in demand by emergency management departments around the world. From earthquakes and hurricanes to volcanic eruptions, wildfires, oil spills, pandemics, and terrorist attacks, PDC’s software platforms integrate real-time monitoring with predictive intelligence so decision makers can target resources for maximum impact when seconds count.
Pacific LightNet
Pacific LightNet operates high-bandwidth satellite ground stations and datacenters in Hawaii tailored to international media, banking, and academia clients needing low-latency connectivity. By linking undersea and orbital networks, Pacific LightNet can securely bridge Hawaii with major commercial hubs in Los Angeles, Australia, Philippines, Hong Kong and Japan.
With points-of-presence near cable landing stations on Oahu, Maui and Big Island along with resilient microwave links between islands, Pacific LightNet‘s infrastructure handles sensitive content distribution and backups for Hollywood studios, financial transactions and scientific data.
Top Private Tech Companies Driving the Local Economy
Alongside public sector innovation labs and corporately-funded R&D centers, locally founded technology-focused businesses are playing a pivotal role across Hawaii‘s economy. These homegrown companies create quality jobs while demonstrating how software and modern enterprise solutions can drive all industries forward.
Servco Pacific – Founded in 1919
Evolving from an automotive parts wholesaler to now Hawaii‘s largest diversified conglomerate, Servco Pacific distributes cars, electronics, home appliances and lifestyle products while operating dealerships, retail chains and digital platforms. Servco employs over 1,800 people across Hawaii generating over $2 billion in annual revenues.
Central to Servco‘s success is staying on the cutting edge of technology. Leveraging cloud infrastructure and emerging software tools, Servco builds innovative mobile apps and web platforms tailored for Hawaii residents and visitors. Whether buying a vehicle entirely online or booking the perfect vacation rental property through Servco‘s digital marketplace, customers appreciate the convenience and personalization.
"Servco is committed to developing digital solutions enabling businesses to simplify transactions while still preserving our cherished culture," says Executive Vice President Reid Yamashiro. "The right technologies implemented respectfully can empower society."
Unified Enterprise Corporation (UEC) – Founded in 2003
Honolulu-based firm UEC provides full-lifecycle customized software, data infrastructure and cybersecurity solutions to over 50 Hawaii business clients simplifying operations. UEC‘s core solutions include network design/installation, business productivity platforms like Microsoft Dynamics integrated with cloud infrastructure and managed IT services.
UEC prides itself on taking complex enterprise technologies, tailoring them to each client‘s unique needs with a local touch backed by ongoing training and support.
"We strive for relationships not transactions, with technology woven seamlessly enhancing how Hawaii companies function at peak efficiency," says UEC President Thomas Kim. "Our team loves solving real-world problems with software and data."
Publicly Traded Tech Leaders
A select number of Hawaii-based technology corporations trade shares publicly on US stock exchanges, enabling investors worldwide to own a piece of innovative island companies.
Hawaiian Telcom Holdco (HCOM)
Traded on the NASDAQ exchange with an overall value exceeding $600 million, Hawaiian Telcom Holdco represents one of Hawaii’s original telecom providers continuing to propel the islands forward as an R&D hub and gateway to Asia-Pacific markets with low latency connectivity.
Central Pacific Financial Corp (CPF)
With 10 branches across Hawaii, Central Pacific Bank holds billions in assets. Its parent company Central Pacific Financial Corp trades on the NYSE American exchange at a $550 million valuation. Serving Hawaii communities since 1954, Central Pacific merged the latest digital fintech innovations into traditional relationship banking.
Once Prominent Hawaiian Tech Brands Now Gone
Unfortunately several technology firms blazing new ground could not stand the test of time as competitive pressures mounted. Two examples of bygone Hawaii tech pioneers include:
Pacific Wireless Communications (2000-2016)
Pacific Wireless Communications installed broadband wireless infrastructure delivering internet access to communities lacking cable or DSL connectivity across Hawaii. Their innovative technologies brought vital modern communications to previously underserved neighborhoods.
However, overwhelming capital demands ultimately forced Pacific Wireless Communications to declare bankruptcy as larger telecom rivals pushed into rural markets. Still, the company helped connect Hawaii residents and propel wider internet adoption until assets were sold off.
Sunetric (2004-2020)
Founded by lifelong renewable energy advocate Matt Bailey in 2004, Sunetric tapped into consumer desire for energy independence by offering custom solar panel systems and batteries allowing households to generate their own clean electricity. With experienced installers across Hawaii, Sunetric helped thousands go solar over 15 years.
Unfortunately as permitting costs increased and large mainland solar firms offered cheaper equipment sourced overseas with thinner margins, Sunetric struggled turning profits to continue competing and was dissolved. Sunetric did successfully advance early solar adoption playing a key role in Hawaii’s clean energy transformation.
Looking to the Future
While Hawaii will likely never replicate Silicon Valley in terms of tech talent density or software riches, the island state seems poised for targeted technology growth in coming years. Hawaii provides unmatched cultural experiences letting innovators indulge passions.
With top-ranked universities nurturing local students into engineers right at home rather than seeing grads relocate out-of-state, steady progress sustaining tech jobs and producing exports will continue. Government programs like the Hawaii Small Business Innovation Research initiative award over $2 million in grants annually to fund science and tech startups solving pressing problems across defense, agriculture, sustainability and healthcare sectors.
From unleashing entrepreneurs to backstop lush landscapes, smart technologists are forging solutions in Hawaii while catalyzing economic diversification, high-paying employment and enhanced self-reliance across the post-pandemic recovery. With computers and connectivity now accessible from every beach and mountaintop, Hawaii builds upon its relaxed atmosphere by upholding innovation advancing society while preserving treasured traditions.
The heavenly islands embrace technology making life more vibrant. And for startups choosing Hawaii as their home base, living the dream fuels global impact. The future remains bright for Hawaii as its tech industry blooms yielding prosperity.
