Amazon engineers are publicly criticizing the company’s significant investments in AI data centers while implementing mass layoffs, with over 30,000 corporate jobs cut since October. This sentiment was voiced at a Seattle City Council meeting that resulted in a one-year moratorium on new mega data center developments.
The move by Seattle reflects a growing trend of local governments regulating the rapid expansion of AI infrastructure, as companies like Amazon, Microsoft, and Google commit hundreds of billions to AI development amid workforce reductions.
Amazon engineers have voiced strong criticism against their employer, citing the company's aggressive investment in AI data centers while simultaneously conducting significant layoffs. The engineers highlighted the apparent contradiction at a Seattle City Council meeting, where a proposal to temporarily halt new mega data center developments was unanimously approved.
During the hearing, software engineer Patrick Schloesser pointed out that Amazon is reportedly spending $200 billion on capital expenditures this year, with a substantial portion allocated to data centers and AI. "Meanwhile, the leaders at my company have laid off 30,000 corporate employees in the last eight months," Schloesser stated. "What that tells me is that Big Tech is desperate to build as much compute capacity as it can, as fast as it can."
The Seattle City Council's decision to implement a one-year moratorium on new large-scale AI data centers aims to provide time for the city to develop regulations for such projects. This move follows proposals from four developers seeking to build large facilities in Seattle, though two have since withdrawn their plans due to public opposition, according to the Seattle Times.
An Amazon spokesperson acknowledged the engineers' right to voice their opinions and stated, "Currently, we don't have any plans to construct data centers within the Seattle city limits." The company also emphasized its commitment to being a responsible neighbor in communities where it operates data centers, focusing on economic development and efficiency.
Seattle's action aligns with a broader trend of cities and counties imposing limits on the rapid expansion of AI data centers. The National Conference of State Legislatures reports that 14 states are considering legislation to pause or ban new data centers, and a Data Center Watch report indicated that significant data center projects were blocked or delayed in 2025 due to local opposition and legal challenges.
Amazon, along with rivals Microsoft, Alphabet, and Meta, has committed approximately $700 billion to capital expenditures this year, largely for AI infrastructure. This surge in investment occurs even as these tech giants pursue cost-cutting measures, including widespread layoffs.
Amazon CEO Andy Jassy has been driving efforts to streamline the company, which has resulted in the elimination of over 30,000 corporate jobs since October. The company reaffirmed its $200 billion capital expenditure forecast for this year in its first-quarter earnings report.
Engineers like Schloesser are urging city officials to mandate the use of renewable energy for data centers, prohibit the use of non-disclosure agreements, and implement new taxes to fund city jobs following large layoffs.
Amazon stated its ongoing efforts to improve data center operations, including the use of carbon-free energy, enhanced energy efficiency, and a commitment to returning more water to communities than it consumes by 2030.
Schloesser, along with fellow Amazon engineers Liesl Wigand and Darius Irani, are part of Amazon Employees for Climate Justice, a group advocating for responsible AI rollout and addressing the costs and necessary safeguards associated with the technology.
Wigand described Amazon's aggressive embrace of AI as an "all-costs-justified AI build out," stressing the need for local governments and community stakeholders to guide data center development.
The Land Use and Sustainability Committee unanimously approved the one-year moratorium. A related video discusses OpenAI's deepening ties with Amazon amid a fraying relationship with Apple.
