Report: Amazon Eyes $15B Expansion of U.S. Warehouse Network - Modern Distribution Management

Report: Amazon Eyes $15B Expansion of U.S. Warehouse Network

Pending partner investment, Amazon is considering expanding its U.S. warehouse network with new logistics facilities, focusing on delivery hubs and automated fulfillment centers.
Toronto, Ontario, Canada - September 11, 2022: Amazon logo on the new build modern building. Amazon Smile Arrow logo and brand trademark. Fulfillment center warehouse and office building.

Amazon is considering a $15 million plan to expand its warehouse network with approximately 80 new logistics facilities across U.S. cities and rural regions, Bloomberg reported on April 9, citing people familiar with the matter.

The planned facilities will mainly serve as delivery hubs, with certain sites also featuring large, automated fulfillment centers. Bloomberg said the company is actively soliciting proposals from capital partners and is said to be considering long-term leases between 15 and 25 years. In some circumstances, Amazon may make direct investments in select locations.

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Amazon told Bloomberg that the projects are under discussion and not yet finalized.

“Meetings like this with our capital partners are routine and part of the normal due diligence process, as we consider potential, future projects,” Amazon Spokesperson Steve Kelly said.

During the pandemic, Amazon invested heavily in its retail infrastructure, spending around $2 billion each quarter on surplus warehouse and transportation capacity. Recently, Amazon has shifted focus to its cloud and AI business. The news of this planned invest would mark an aggressive return to physical expansion for Amazon’s warehouse network.

Amazon Sues CPSC Over Product Recall Liability (March 18)

Separately, Bloomberg reported that Amazon canceled orders for several products manufactured in China and other parts of Asia after the broad U.S. tariff announcements on April 2. The cancellations allegedly caught some vendors off guard, leading to speculation that the move was a direct reaction to the new trade measures.

To learn more about Amazon’s $15 billion expansion, click here.

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