Amazon engineers testified at Seattle City Council hearings on Wednesday in support of efforts to regulate AI data center development, as their employer spends $200 billion on capital expenditures this year while conducting mass layoffs. Patrick Schloesser, a software engineer at Amazon Web Services, told the hearing that Amazon has laid off 30,000 corporate employees in the last eight months while the company and Microsoft collectively spend $390 billion on data centers and AI infrastructure infrastructure. Seattle officials voted to approve a one-year moratorium on new large-scale AI data centers, joining 14 states considering legislation to pause or ban such facilities amid local opposition to the explosive growth of AI infrastructure projects.
Amazon Commits $200 Billion to AI Infrastructure Amid 30,000 Layoffs
"It's been reported that this year, Amazon is spending $200 billion dollars on capital, with most of it going to data centers and AI," Schloesser said at the hearing. "Microsoft is spending $190 billion. Meanwhile, the leaders at my company have laid off 30,000 corporate employees in the last eight months. What that tells me is that Big Tech is desperate to build as much compute capacity as it can, as fast as it can."
Schloesser has worked at Amazon for nearly six years. The 30,000 corporate job cuts he cited have all come since October, part of an attempt by CEO Andy Jassy to remove layers and slash bureaucracy. In February, Amazon announced it plans to spend $200 billion on capital expenditures this year, with the majority going toward AI infrastructure. The company reaffirmed that forecast in April.
Amazon, Microsoft, Google parent Alphabet, and Meta have committed roughly $700 billion this year to capital expenditures, mostly for AI infrastructure. At the same time, the tech giants are looking for ways to cut costs, including through layoffs.
Seattle City Council Approves One-Year Data Center Moratorium
Seattle officials voted to approve a one-year moratorium on new large-scale artificial intelligence data centers to allow time for the city to regulate the projects. The proposal came after four developers approached a local utility provider to pitch building five large scale facilities in Seattle. Two of those developers have since withdrawn their proposals following public outcry, the Seattle Times reported.
The one-year moratorium was approved unanimously by the council's Land Use and Sustainability Committee on Wednesday. According to the National Conference of State Legislatures, 14 states are considering legislation that would pause or ban new data centers. A report from Data Center Watch found that in 2025, at least $156 billion in data center projects were blocked or delayed amid local opposition and litigation.
Amazon States No Plans for Seattle Data Centers
"Currently, we don't have any plans to construct data centers within the Seattle city limits," an Amazon spokesperson told CNBC in a statement. "Across the communities where we do operate data centers, we're committed to being a responsible neighbor --- investing in local economic development while prioritizing water and energy efficiency that exceeds industry standards."
The Amazon spokesperson said the company respects its colleagues' right to voice their opinions. Amazon said it continues to reevaluate how its data centers operate, including working to power them with carbon-free energy and make them more energy efficient. The company said it was aiming to return more water to communities than it uses in its data centers by 2030.
Engineers Demand Renewable Energy Requirements and Layoff Tax
Schloesser urged Seattle officials to require data center developers to commit to using renewable energy to power facilities and no longer use non-disclosure agreements or shell companies when announcing new projects. "You've got to provide good jobs building these things, and you've got to pay a new tax that funds city jobs every time you conduct a large layoff," Schloesser said.
Schloesser and the two other Amazon engineers who spoke at the hearings, Liesl Wigand and Darius Irani, are part of Amazon Employees for Climate Justice. The group of current and former Amazon workers has repeatedly pressed the e-retailer on its climate stance, treatment of its workforce and other issues. In November, the group penned a letter to Amazon executives calling on the company to establish a "more responsible rollout of AI," and "get real about the costs of AI and the guardrails we need."
Wigand, who has worked for Amazon for more than 12 years, characterized Amazon's push to embrace the technology as an "all-costs-justified AI build out." "The biggest issue is a belief that AI should be how we solve everything, while ignoring the resources that it costs," Wigand said. "This culture is omnipresent across tech. That's why local governments, in collaboration with community stakeholders, should be setting the terms for data center buildout."
FAQ
How much is Amazon spending on AI infrastructure this year?
Amazon announced in February it plans to spend $200 billion on capital expenditures this year, with the majority going toward AI infrastructure. The company reaffirmed that forecast in April.
How many Amazon employees have been laid off in the last eight months?
Amazon has laid off 30,000 corporate employees in the last eight months since October, according to Patrick Schloesser, a software engineer at Amazon Web Services who testified at Seattle City Council hearings on Wednesday.
What action did Seattle City Council take regarding AI data centers?
Seattle officials voted to approve a one-year moratorium on new large-scale artificial intelligence data centers on Wednesday. The moratorium was approved unanimously by the council's Land Use and Sustainability Committee.
