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Amazon, D.C. friend or foe? Only time will tell

Amazon, D.C. friend or foe? Only time will tell

Published on Wed Aug 04 2021 14:45:00 GMT+0000 (Coordinated Universal Time)

The digital behemoth is changing DC's business landscape forever.


Many recognize Amazon's 2019 decision to station one of their HQ2 sites in northern VA as a major economic win for the region.  However, Amazon's growing presence in the community could also negatively impact our community. To combat some of the more obvious sore points, Amazon is doing all it can to garner public support and prevent a repeat of 2019 when community advocates and politicians pushed the company out of its other planned HQ2 site in Queens, NY.

In addition to pledging to bring 25,000 high paying jobs, the company also pledged $125 million in early July to finance local affordable housing projects on Washington Metropolitan Area Transit Authority (WMATA)-owned lots, and donated over $40 million of undeveloped land directly to Arlington County to create affordable housing.  

Observers are also claiming that Amazon Chairman Jeff Bezos' recent $200 million donation to the Smithsonian was also a ploy to bolster the company's reputation and garner additional community partnership. To help put the donation  into perspective, the $200 million donation is now the museum's largest single gift since its founding in 1846.

Amazon's investment in the region is well worth it. Not only does the area rank no 1 in education (tied with Massachusetts), but it also has one of the Nation's most educated workforce (with the nation's largest concentration of science, technology, engineering and math employees). In addition, the HQ2 is also located very near the Federal government. In addition, evidence is mounting that Amazon's second headquarters was chosen to leverage its influence over the Federal Government (through Government contracts and lobbying opportunities) and impact the Data Center Alley, or, as one author described it, the 'bull's-eye of America's internet', which is also located in northern VA. It's estimated more than 70% of the world's internet traffic flows through Data Center Alley.

Only time will tell if the relationship between Amazon and the D.C. Metro area will be wholly beneficial. In the meantime, it's clear both sides are profiting. As of just last week, CNBC reinstated Virginia back on top as the #1 State for business.

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