Tech and e-commerce leader Amazon (AMZN) is exploring partnerships for financing a substantial expansion plan, targeting the construction of warehouses across the United States. This initiative aims to secure approximately $15 billion for the development of nearly 80 new logistics facilities.

Details of the Expansion Plan

As reported by Bloomberg, Amazon’s proposed sites will be strategically located in both metropolitan areas and rural regions, optimally positioned to enhance its delivery network. The company intends to fund some of these locations independently while leasing others for extended terms of 15 to 25 years.

The majority of these new facilities are expected to serve as delivery hubs, crucial for van and truck logistics. Some sites may also feature large, multistory fulfillment centers, equipped with advanced automation technology, including robots.

Impact of Recent Trade Policies

Amazon’s recent solicitation of proposals from potential financial partners coincided with President Donald Trump’s announcement of new tariffs on global goods. Although these tariffs have since been paused for most countries, their potential impact on supply chain costs remains a concern. It is anticipated that these trade policies could lead to increased freight and shipping expenses, ultimately affecting warehouse operations and consumer pricing.

Recent Financing Activities and Strategic Shifts

In connection with its ongoing logistics strategies, Preylock Real Estate Holdings, based in Los Angeles, recently secured a $1.1 billion loan package to refinance a portfolio of Amazon-leased warehouses across 10 states. This deal encompasses 12 warehouses totaling approximately 8.9 million square feet, committed to Amazon for an average lease term of around 14 years.

This expansion marks a significant shift from Amazon’s previous strategy, wherein the company reduced its industrial real estate footprint. In 2022, Amazon had announced the cancellation or postponement of 49 delivery facilities, which accounted for over 50 million square feet.

Operations in Canada

Furthermore, as part of restructuring its logistics strategy, Amazon declared plans to close all seven of its warehouses in Quebec. Instead, the company will focus on using third-party delivery services to maintain its operations in that region, as covered by the Associated Press.