Amazon has received 238 applications from cities and states interested in hosting the e-commerce giant's second headquarters. While the call for applications was valid only in North America, it's only a question of time before Amazon takes the same step in other regions. The scale of the business makes the process eye-catching even on an international level.
In early September Amazon announced plans to build a second headquarters (HQ2) in North America, alongside its existing base in Seattle. The construction is expected to cost USD 5 billion and generate up to 50,000 jobs. The deadline for applications to host the new HQ was 19 October. Bidders needed to involve cities with at least 1 million residents, have access to an international airport and be prepared to offer financial incentives.
Major economic impact
For some comparison, Amazon gave details on the scale of its current headquarters in Seattle. The campus counts 33 buildings, with a total 750,000 m2 and 40,000 workers. Over time it has invested USD 3.7 billion in the site. The number of nights spent in local hotels as a result of Amazon's presence is estimated at 233,000 in 2016, and the company led to the creation of 53,000 local jobs. Amazon claims it's contributed USD 38 billion to the local economy.
Reasons enough then to respond to the request for proposals. The stakes are huge, for direct and indirect investment, the local economy and attracting highly skilled workers. The company's presence can also create healthy ground for start-ups. Amazon's expansion in every direction means Europe could also benefit. The company is expanding on multiple levels, from commercial (e-commerce, AWS, video) and geographic to infrastructure such as distribution and data centres.
Denver, Boston, Washington ...
American media reports suggest many cities are applying even if they don't fully meet Amazon's criteria, with a wide range of incentives on offer. Stonecrest, Georgia has offered to build a new town called Amazon, while the state of New Jersey is offering up to USD 5 billion in incentives for Amazon to base itself there. The New York Times scrutinised Amazon's conditions and came up with a shortlist of Boston, Washington, Portland and Denver as the best candidates. Portland is unlikely given its proximity to Seattle, and the paper sees Denver as having the best chance.
If Amazon wanted to build on existing R&D centres for HQ2, then it would look at Atlanta, Austin, Boston, Minneapolis, Pittsburgh and Portland. Chicago, Washington and Toronto (Canada) have also been named as good candidates, and New York City, Phoenix, Memphis and Phildalephia are also participating in the request for proposals.
Amazon likely already has its own short-list of cities, and the incentives offered will help the company make its final choice. The winner is expected to be announced in early 2018.
