Amazon Plans for More Massive Warehouses

The company is building its biggest-ever distribution centers in New York, Colorado, and California.

1 minute read

August 2, 2022, 7:00 AM PDT

By Diana Ionescu @aworkoffiction

Amazon warehouse in Spokane, Washington

Kirk Fisher / Amazon warehouse

Despite canceling or delaying more than 40 planned warehouse facilities, Amazon just won approval to build another massive distribution center in Niagara, New York. According to an article by Jack Daleo in FreightWaves, Amazon is already building two more megawarehouses: a five-story, 4.1 million-square-foot facility in Ontario, California, and a five-story, 3.8 million-square-foot project in Loveland, Colorado.” 

The company is expected to open 250 additional facilities of various sizes in 2022. “Chief Financial Officer Brian Olslavsky estimated on the company’s earnings call that Amazon is allocating 40% of its spending capital to support warehouse and transportation capacity.” Meanwhile, the company lost 99,000 workers in the second quarter of 2022. “It’s a sign that the company elected not to replace the thousands of workers who left between April and June.”

Amazon has been buying significant swaths of real estate across the country, tripling its holdings of built industrial space between 2020 and 2022.

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