How Data Drove Amazon Towards Two New HQs

Tech giant expected to opt for New York and Washington after gathering intelligence ‘gold mine’

The Financial Times
Financial Times

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By Shannon Bond

Jeff Bezos said last week that Amazon’s decision about where to put its second headquarters would be guided by “heart” and “intuition”. But it appears the data-driven technology giant is also following its head.

Amazon is closing in on deals to build satellite offices in the Virginia suburbs of Washington DC and New York City’s Long Island City neighbourhood, according to people familiar with the matter.

The “HQ2” project — originally framed as a “full equal” to the company’s Seattle headquarters with a promise of $5bn in investment and 50,000 jobs — would be split between the two locations, putting Amazon’s largest workforces outside of Seattle in cities that were widely considered obvious candidates for the company’s next phase of growth.

The HQ2 selection process has emerged as a potent example of Amazon’s tried and tested practice of hoovering up vast amounts of data — from customers, sellers on its online marketplace and cloud computing clients — and then using that information to guide business strategy.

Data-driven decision-making

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