Amazon may be about to spend $15 billion on new US warehouses
- Amazon wants to add 80 new sites to its existing 600 US facilities
- The plans could cost the company an estimated $15 billion
- Trump’s tariffs have impacted certain orders
Amazon is reportedly planning to invest a staggering $15 billion across no less than 80 new logistics facilities across the US in a bid to better serve both cities and rural areas.
A report from Bloomberg claims the company is planning to develop new delivery hubs, with some being large fulfillment centers equipped with state-of-the-art robots.
Amazon is now inviting capital partners to submit proposals in what’s seen as welcome news amid ongoing tariff-induced economic uncertainty.
Amazon wants to spend $15bn on 80 US logistics facilities
When the world moved to remote and online habits during the pandemic, Amazon was believed to have overspent on retail infrastructure and staffing, leading to multiple rounds of layoffs. Between November 2022 and March 2023, Amazon laid off around 27,000 workers.
Although its ecommerce business continues to grow, recent investments have largely focused on cloud and AI technologies, so it’s reassuring to see that the online retail giant is hasn’t given up on what it’s known best for by consumers.
Speaking about the company’s fourth-quarter and year-end results, Jassy noted Amazon had delivered its “fastest speeds ever” for Prime in 2024, with a 65% year-over-year increase in US orders delivered on the same day or overnight, thanks largely to its expansive network of logistics facilities and transportation resources.
The company now has around 600 fulfillment centers in the US alone, but no timeline has been shared for the addition of another 80.
Despite a positive outlook, it’s clear that Amazon isn’t immune from the ongoing trade war, having reportedly canceled numerous orders from China and other Asian countries over tariffs.
Amazon told us that the projects being discussed aren’t finalized, but they are still ideas that are up for consideration.
Steve Kelly, a spokesperson for Amazon, noted: “Meetings like this with our capital partners are routine and part of the normal due diligence process, as we consider potential, future projects.”
The company also confirmed some figures to us – Amazon supports nearly five million jobs across the US, having invested over $244 billion into the nation in 2023 alone.
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