Amazon engineers publicly criticized the company for its decision to spend $200 billion on AI infrastructure, including data centers, while laying off more than 30,000 corporate employees since October [1]. The criticism was voiced during a Seattle City Council meeting, where officials unanimously approved a one-year moratorium on new large-scale artificial intelligence data centers to allow time for regulatory development [1]. Patrick Schloesser, an Amazon Web Services software engineer, highlighted that Amazon's capital expenditure this year is $200 billion, with most allocated to data centers and AI, and noted that Microsoft is spending $190 billion on similar initiatives [1].
The moratorium follows public outcry after four developers approached a local utility to propose five large-scale data center projects in Seattle; two developers have since withdrawn their proposals [1]. Seattle joins other U.S. cities and counties seeking to limit the rapid expansion of AI data centers, with 14 states reportedly considering legislation to pause or ban new data centers [1]. A Data Center Watch report found that at least $156 billion in data center projects were blocked or delayed in 2025 due to local opposition and litigation [1].
Major technology companies, including Amazon, Microsoft, Alphabet (Google's parent), and Meta, have collectively committed approximately $700 billion this year to capital expenditures, primarily for AI infrastructure [1]. Despite these investments, tech giants are simultaneously implementing cost-cutting measures, such as layoffs [1]. Amazon's CEO Andy Jassy has described the job cuts as part of an effort to streamline the company and operate more efficiently [1].
The Seattle City Council's decision reflects growing regulatory scrutiny and community resistance to the environmental and infrastructural impacts of large-scale AI data centers. Schloesser urged officials to require data center developers to commit to using renewable energy [1].
CONCLUSION
Amazon's significant investment in AI infrastructure amid large-scale layoffs has sparked internal criticism and led Seattle to impose a one-year moratorium on new mega data centers. The move highlights increasing regulatory and community pushback against the rapid expansion of AI data centers, even as major tech firms continue to prioritize AI-related capital expenditures.