So far in 2022, Amazon’s U.S. facility network has flopped.
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. Currently, the company’s largest warehouse is a 3.6 million-square-foot distribution center in Mount Juliet, Tennessee — meaning either facility could take that mantle.
Despite the delays and closures earlier in the year, MWPVL estimates that Amazon will open 250 more facilities in 2022. Some will be behemoths like the warehouses planned for New York, California and Colorado. Others will be small delivery stations that are closer to 100,000 square feet and focus on the last mile.
The equally important and costly final mile inside warehouses
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. He added that it expects to grow into its excess warehouse capacity as the year goes on.
