Amazon has selected New York City and Arlington, Virginia, as the locations for the company’s new headquarters, with the company to invest $5 billion and create more than 50,000 jobs across the two new headquarters locations.
The new locations will join Seattle as the company’s three headquarters in North America. In addition, Amazon announced that it has selected Nashville for a new Center of Excellence for its Operations business, which is responsible for the company’s customer fulfillment, transportation, supply chain, and other similar activities. The Operations Center of Excellence in Nashville will create more than 5,000 jobs.
The new Washington, D.C. metro headquarters in Arlington will be located in National Landing, and the New York City headquarters will be located in the Long Island City neighborhood in Queens. Hiring at both the new headquarters will begin in 2019, Amazon said. The Operations Center of Excellence will be located in downtown Nashville as part of a new development site just north of the Gulch, and hiring will also begin in 2019.
"We are excited to build new headquarters in New York City and Northern Virginia," said Jeff Bezos, founder and CEO of Amazon. "These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come. The team did a great job selecting these sites, and we look forward to becoming an even bigger part of these communities."
As part of Amazon’s new headquarters, New York and Long Island City will benefit from more than 25,000 full-time high-paying jobs; approximately $2.5 billion in Amazon investment; and 4 million square feet of energy-efficient office space with an opportunity to expand to 8 million square feet.
The retailer said it will get billions of dollars as direct incentives from the three selected cities, contingent to creating a specific number of jobs.
Amazon said it would receive performance-based direct incentives of $1.525 billion based on the company creating 25,000 jobs in Long Island City. This includes a refundable tax credit through New York State’s Excelsior Program of up to $1.2 billion calculated as a percentage of the salaries Amazon expects to pay employees over the next 10 years, which equates to $48,000 per job for 25,000 jobs with an average wage of over $150,000; and a cash grant from Empire State Development of $325 million based on the square footage of buildings occupied in the next 10 years. Amazon will receive these incentives over the next decade based on the incremental jobs it creates each year and as it reaches building occupancy targets.
As part of Amazon’s new headquarters, Virginia and Arlington will benefit from more than 25,000 full-time high-paying jobs; approximately $2.5 billion in Amazon investment; and 4 million square feet of energy-efficient office space with the opportunity to expand to 8 million square feet.
Amazon will receive performance-based direct incentives of $573 million based on the company creating 25,000 jobs with an average wage of over $150,000 in Arlington. This includes a workforce cash grant from the Commonwealth of Virginia of up to $550 million based on $22,000 for each job created over the next 12 years. Amazon will only receive this incentive if it creates the forecasted high-paying jobs. The company will also receive a cash grant from Arlington of $23 million over 15 years based on the incremental growth of the existing local Transient Occupancy Tax, a tax on hotel rooms.
Tennessee, Davidson County and the city of Nashville will benefit from 5,000 full-time, high-paying jobs; over $230 million in investment; and 1 million square feet of energy-efficient office space.
The company will receive performance-based direct incentives of up to $102 million based on the company creating 5,000 jobs with an average wage of over $150,000 in Nashville. This includes a cash grant for capital expenditures from the state of Tennessee of $65 million based on the company creating 5,000 jobs over the next 7 years, which is equivalent to $13,000 per job; a cash grant from the city of Nashville of up to $15 million based on $500 for each job created over the next 7 years; and a job tax credit to offset franchise and excise taxes from the state of Tennessee of $21.7 million based on $4,500 per new job over the next 7 years.
Amazon has more than 610,000 employees worldwide, including over 250,000 in North America.
New Amazon Web Services Data Centers in Italy
In related news, Amazon Web Services, Inc. announced it will open an infrastructure region in Italy in early 2020. The AWS Europe (Milan) Region will comprise of three Availability Zones and will be AWS’s sixth region in Europe, joining existing regions in France, Germany, Ireland, the UK, and Sweden (launching in late 2018).
The addition of the AWS Europe (Milan) Region will enable organizations to provide lower latency to end users in Italy. Local AWS customers with data residency requirements will be able to store their content in the country, with the assurance that they retain complete control over the location of their data, while customers building applications that comply with the General Data Protection Regulation (GDPR) will have access to another secure AWS infrastructure region in the European Union (EU).