Following a year-long campaign which garnered the hopes and dreams of over 230 municipalities across the globe, Amazon this week confirmed its decision to establish two new HQ2 campuses in New York City and Arlington, Northern Virginia.
According to their official announcement, the e-commerce giant plans to invest $5 billion in constructing two new corporate headquarters in the locales above – with both locations expected to generate a combined total of 50,000 new jobs.
“We are excited to build new headquarters in New York City and Northern Virginia,” said Amazon’s founder and Chief Executive Jeff Bezos, who noted that “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.”
“We are excited to build new headquarters in New York City and Northern Virginia” – Amazon founder Jeff Bezos
The two campuses will join Amazon’s existing headquarters in Seattle, Washington, with the three of them serving as the company’s new nationwide corporate network.
Two New Campuses
The first new campus location, which Amazon has dubbed “National Landing,” is located in an area known as Crystal City, and is expected to see a $2.5 billion investment from Amazon, directly.
In addition to that, the state of Virginia has promised the e-commerce giant $550 million in “direct assistance” throughout the next 15 years, plus an additional $23 million subsidy from the city of Arlington, directly.
Amazon was also promised an additional $195 million by the State of Virginia, which is to be invested directly into “transportation and infrastructure improvements to the area.”
The state of New York and New York City, meanwhile, are expected to assist Amazon with subsidies totaling as much as $1.525 billion throughout the next decade (as long as the company delivers on its pledge of creating 25,000 new jobs.)
According to Reuters, the incentive package offered to Amazon by New York also includes a “refundable tax credit” of up to $1.2 billion over the next 10 years, which is in accordance with the State’s “Excelsior Program,” which offers additional incentives based on what Amazon is expected to pay its 25,000 employees.
Amazon’s Center of Excellence
In addition to announcing its two new headquarter locations, Amazon revealed that Nashville, Tennessee will soon serve as the home of its future operations business, which is dubbed the “Center of Excellence,” and will handle mostly back-end duties like supply-chain, order fulfillment, etc.
The Nashville location, which reportedly comprises over 1 million square feet of office space, is expected to create 5,000+ jobs in the area and ultimately an estimated tax revenue of more than $1 billion over the next decade, according to reports.
Notably, Amazon will receive up to $102 million in additional, direct tax incentives if it’s able to create and maintain 5,000 jobs paying an average salary of $150,000 per year.
Amazon’s search for a location to build its proposed $5 billion campus kicked-off back in September 2017, and initially saw 238 cities apply for their chance to host the new facility and benefit from all the economic activity it would foster.