Report: Amazon Plans $15B Warehouse Expansion
The company is seeking proposals from capital partners to pay for last-mile sites and multi-story fulfillment centers.
Amazon may be looking to ramp up its U.S. logistics real estate holdings again in a big way. The e-commerce company is reportedly seeking proposals from capital partners to fund up to $15 billion for warehouse and distribution sites in cities and rural areas.
The report from Bloomberg notes the properties would mostly be last-mile delivery hubs but larger, multi-story fulfillment centers equipped with robots may also be part of the mix. An Amazon spokesperson confirmed discussions were underway but described them as routine and part of the company’s due diligence when considering potential properties.
No locations or projects have been announced. But sources familiar with Amazon’s plans told Bloomberg the company would consider developing some sites directly and also leasing facilities from 15 to 25 years.
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The expansion plans were apparently in the works before the recent tariff announcements from the Trump administration and it’s unclear how they could impact Amazon’s decisions on expansion. While the new tariff policy is aimed at strengthening the U.S. manufacturing sector and shrinking trade deficits with global trading partners, the rollout has roiled stock and bond markets leading President Donald Trump to issue a 90-day pause for many nations this week. Most are now dealing with a 10 percent tariff during the pause. However, the president hit China, which levied retaliatory rates against the U.S., with tariffs of 145 percent on imports.
It’s too soon to know all the impacts the increased tariffs may have on the U.S. industrial sector but there is hope they may spur demand for more space as companies look to reshore or expand domestic manufacturing.
Focus on data centers
The Amazon news comes several years after the e-commerce giant pulled back from the new construction and leasing push that followed the pandemic and resulted in excess space. In recent years, Amazon has focused much of its expansion on data centers as it has grown its cloud and AI business. Amazon Web Services said in June 2023 it would invest $7.8 billion to construct data centers over six years in Central Ohio. That year AWS also committed $35 billion over 17 years to expand its data center operations in Virginia.
Amazon made several announcements throughout 2024 about data center developments at sites across the U.S. An $11 billion data center campus was announced for northern Indiana, the largest capital investment in that state’s history. AWS also expanded its presence in Pennsylvania, acquiring a 1,200-acre campus for $650 million.
Logistics leasing picks up
Amazon turned its attention and its money back to industrial warehouses in 2024, when it began ramping up leasing at logistics sites. In June 2024, Amazon leased a full building, about 225,800 square feet, at a site owned by Industry Realty Group in Federal Way, Wash. The company made at least two announcements in April that year in the Phoenix market. Amazon signed a 1 million-square-foot, full-building 10-year lease at the Paloma Vista Logistics Center in Buckeye, Ariz. Also that month, Amazon signed a 1.2 million-square-foot 10-year lease at Prologis 303 Business Park in Goodyear, Ariz. In March, Amazon inked a 10-year deal for 1.2 million square feet at The Cubes at Glendale in the West Valley region.
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