- Amazon doubled its industrial real estate spending in 2024, surpassing $2B across nearly 40 transactions, compared to $920M in 2023.
- Amazon’s acquisitions included over 3,000 acres across 14 states, with a strong emphasis on central Virginia, solidifying its position in the data center market.
- The company’s largest acquisition was a $394M, 2.8 MSF fulfillment center in Daytona Beach, Florida, set to open soon.
After pulling back from industrial acquisitions in 2022, Amazon (AMZN) pivoted back to growth in 2024. The company spent $2B on acquisitions, signaling a renewed focus on expanding its logistics and data center capabilities, according to The Real Deal. This surge comes after cautious corrections in 2022 when Amazon closed or postponed nearly 100 facilities to address prior over-expansion.
Strategic Acquisitions
Amazon’s acquisitions included significant investments in logistics and data centers:
- Daytona Beach, Florida: A $394M, five-story fulfillment center spanning 2.8 MSF.
- Virginia: $640M was spent in central Virginia, including a $218M purchase of 91 acres in Manassas to expand Amazon Web Services (AWS) capacity.
- Data Center Focus: In 2024, almost half of Amazon’s industrial acquisitions were in Virginia, underscoring the state’s growing importance as a data center hub.
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Why It Matters
Amazon’s focus on data centers aligns with AWS’s explosive growth, accounting for 16% of the company’s 3Q24 revenue. As demand for cloud computing and artificial intelligence capabilities surges, Amazon’s real estate investments reflect its strategy to secure infrastructure for future growth.
What’s Next
While Amazon aggressively builds its logistics and data center network, its approach to office space remains uncertain. A potential return-to-office mandate could influence further acquisitions in the commercial real estate sector.
Amazon’s $2B spree indicates a recalibrated strategy that leverages its real estate prowess for logistics and digital infrastructure, securing its dominance in the years ahead.
