When Amazon Asked 238 Cities to Compete for Its Second Headquarters, Chaos Ensued

Cultures · Published 10 October 2026 Swipe more like this →

In short: In 2017, Amazon launched a global search for a second headquarters, triggering a frantic bidding war among hundreds of municipalities. Cities offered everything from giant cacti to tax breaks, hoping to land 50,000 jobs. Yet, the process was later dismissed by critics as a calculated ruse to extract public subsidies.

The search for HQ2 began in September 2017, when Amazon requested proposals for a second corporate home. The company sought metropolitan areas with over 1 million people, proximity to major highways, and access to international airports. By the deadline, 238 jurisdictions had submitted bids, ranging from major U.S. cities to Canadian provinces. To stand out, local governments engaged in elaborate promotional stunts: Birmingham, Alabama, installed giant Amazon boxes, while the city of Stonecrest, Georgia, even voted to de-annex land to create a new city named Amazon.

Critics, including New York University professor Scott Galloway, argued the competition was a sham designed to secure tax incentives from cities that were never serious contenders. Galloway predicted the company would ultimately choose the Washington, D.C. or New York City areas, citing proximity to the nation's capital and Jeff Bezos' personal interests. His prediction proved accurate when Amazon announced in November 2018 that it would split HQ2 between Northern Virginia and Long Island City, New York. However, the New York project was cancelled in February 2019 following intense backlash from residents and politicians who decried the massive public subsidies as corporate welfare.

The remaining site in Northern Virginia, rebranded as National Landing, opened its first phase in June 2023. While Amazon initially promised 50,000 workers across two locations, construction on the second phase in Virginia is currently paused indefinitely. Economists warned of the 'winner's curse,' where cities overpay for corporate expansions that may not deliver the promised economic windfall. As of 2026, Virginia's incentive package remains in place, though Amazon has only received $81,000 in taxpayer subsidies, primarily related to hotel tax adjustments. The saga serves as a cautionary tale about the risks municipalities face when attempting to lure massive corporate entities with generous financial packages.

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