Traffic sensors are vital to the development and operation of Intelligent Transportation Systems, providing essential data for traffic monitoring, management, and transportation infrastructure planning. However, optimizing the placement of these sensors, particularly across large and complex statewide highway networks, remains a challenging task. In this research, we presented a novel search algorithm designed to address this challenge by leveraging information gradients from K-nearest neighbors within an embedding space. Our method enabled more informed and strategic sensor placement under budget and resource constraints, enhancing overall network coverage and data quality. Additionally, we incorporated spatial kriging analysis, harnessing spatial correlations of existing sensors to refine and reduce the search space. Our proposed approach was tested against the widely used Genetic Algorithm, demonstrating superior efficiency in terms of convergence time and producing more effective solutions with reduced information loss.