The rapid expansion of ecommerce, led by Amazon, is driving a surge in the construction of new warehousing and distribution facilities across the United States. Currently, $9 billion worth of such projects is underway, with Amazon accounting for 25% of this activity, according to market research firm Industrial Info Resources.

Amazon alone is responsible for $2 billion in warehousing and distribution projects across the country, fueled by the development of advanced fulfillment centers. These centers streamline order processing and shipping, ensuring efficient delivery of online purchases to customers.

Amazon is No. 1 in the Top 1000 Database. The database is Digital Commerce 360’s ranking of the largest online retailers in North America by annual web sales. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces. The database ranks the 100 largest global marketplaces by third-party gross merchandise value (GMV).

Amazon and ecommerce’s effect on warehousing and distribution

The largest of Amazon’s current projects is a $500 million fulfillment center in Niagara, New York. Scheduled to open in 2026, this facility will leverage robotics to automate inventory management and assist employees with picking, packing, and shipping orders.

Other major Amazon projects include:

• A five-story robotic fulfillment center in Virginia Beach, Virginia.
• An 800,000-square-foot, five-story facility in Bristol, Indiana.

The Bristol facility, classified as a “first-mile” center, will manage smaller items such as books and electronics. It will prepare packages for transport to “middle-mile” and “last-mile” locations. Both projects are expected to be completed by late 2025. Subscribers can access additional details about these developments.

Amazon is also investing in last-mile delivery infrastructure, with projects like an $80 million facility in Mesa, Arizona, and a $12 million renovation in Bakersfield, California. These facilities play a crucial role in ensuring efficient final delivery to customers.

However, the largest single project currently tracked by Industrial Info Resources belongs to Macy’s Inc. The company is building a $640 million, 1.4 million-square-foot fulfillment center in China Grove, North Carolina. Initially budgeted at $584 million in 2022, the investment has increased to incorporate innovative technology for maximum operational efficiency. Macy’s expects the project to be completed by mid-2025.

The food and beverage sectors are also driving warehousing and distribution activity. A significant project underway in Birmingham, Alabama, is a new campus for the Coca-Cola Bottling Company. This facility will serve as the bottler’s headquarters and will include warehousing and distribution operations, as well as office space, a sales center, and a customer call center. Construction began in October and is expected to span three years.

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