Amazon is considering a $15 billion expansion of its U.S. warehouse network, aiming to add approximately 80 new logistics facilities across urban and rural areas. The company has invited potential capital partners to submit proposals for this initiative. The majority of these new facilities are expected to function as delivery hubs, facilitating the final leg of deliveries to customers’ homes, while some will be large, multi-story fulfillment centers equipped with robotics.
This prospective expansion marks a strategic shift for Amazon, which had previously scaled back its physical infrastructure investments following the pandemic-driven surge in online shopping. The move aligns with the company’s broader strategy to enhance delivery speeds and reduce shipping costs, positioning itself competitively against rivals like Walmart and emerging online retailers such as Shein and Temu.
In addition to expanding its warehouse footprint, Amazon is heavily investing in automation and robotics within its fulfillment centers. The company anticipates that these technological advancements will lead to significant cost savings, with projections estimating up to $10 billion in annual savings by 2030. For instance, the implementation of robotics in Amazon’s Shreveport, Louisiana fulfillment center has demonstrated a 25% cost reduction during peak periods.
It’s important to note that Amazon’s solicitation of proposals from capital partners for this expansion began prior to the recent announcement of new U.S. tariffs on imports. The potential impact of these trade policy changes on Amazon’s expansion plans remains uncertain.
