Amazon is eyeing a $15 billion warehouse expansion in the U.S., which could bring up to 80 new logistics facilities to both urban and rural areas. The company is actively seeking capital partners to fund this ambitious expansion, with potential proposals being solicited, as reported by Bloomberg News on Wednesday, citing unnamed sources familiar with the matter.
While most of these new facilities are expected to serve as delivery hubs, some will feature multi-story fulfillment centers equipped with cutting-edge robotics, further automating Amazon’s operations. Currently, Amazon operates over 600 logistics centers across the U.S., including fulfillment centers, delivery stations, and same-day facilities.
Long-Term Leasing & Direct Funding
Amazon is open to leasing the new logistics centers for 15 to 25 years, providing long-term stability for investors. In some cases, the company may directly fund the construction of certain sites.
Strategic Shift
This push for expansion follows a period of heavy investment in infrastructure during the pandemic, when Amazon incurred $2 billion in quarterly expenses due to excess warehouse and transportation capacity. Since then, the company has recalibrated its focus, shifting towards its cloud and AI businesses while reigning in its infrastructure spending.
The proposed warehouse expansion reflects Amazon’s ongoing commitment to solidifying its e-commerce dominance while adapting its logistics network for the future.
