Amazon Scuttles Planned New York H2Q

Mitch Wagner
News Analysis
Mitch Wagner, Executive Editor, Light Reading
2/14/2019



Amazon has abandoned its ambitious plans to build an additional headquarters in the Long Island City section of New York City, the company said in a blog post Thursday. The decision comes as Amazon faced local opposition to the plan.

"For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term," the company said in a blog post Thursday. “While polls show that 70% of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City."

Amazon.com Inc. (Nasdaq: AMZN) says it has more than 5,000 employees in the Brooklyn, Manhattan and Staten Island boroughs of New York City, and plans to continue growing those teams.

The company says it plans not to reopen its HQ2 search "at this time," and will proceed as planned in Northern Virginia and Nashville.

Long Island City, New York, formerly the site of a proposed Amazon HQ2. Photo by John Gillespie (CC BY-SA 2.0)

Long Island City, New York, formerly the site of a proposed Amazon HQ2. Photo by John Gillespie (CC BY-SA 2.0)

While some local political leaders worked with Amazon on a deal to bring the company headquarters to the city, creating more than 25,000 jobs, others objected to nearly $3 billion in government incentives going to the company.

Meanwhile, both Google (Nasdaq: GOOG) and Apple Inc. (Nasdaq: AAPL) are on multi-billion-dollar capex spending sprees, building data centers and offices around the US to fuel cloud demand. Google announced its latest, big expansion phase Thursday. (See Google to Spend $13B on New Data Centers & Offices in US, Google Doubles Capex to $25.46B, Mostly on Data Centers & Offices, Google Splashes $1B on New York Expansion and Apple to Build $1B Austin Campus & $10B Nationwide Data Center Expansion.)

On Twitter, discussion of Amazon's decision has been brisk:

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