Amazon Plans Fully Automated Distribution Centers

Amazon is developing new, highly automated warehouses that leverage artificial intelligence and robotics to process packages, extending logistics automation to the last mile before customer delivery. An internal planning document obtained by Business Insider outlines "Project Tetromino," which aims to create "fully automated" distribution centers.

The project, if realized, would involve significant investment. Initial plans suggest a pilot program launch in 2028 with a budget of $103 million. Following this, Amazon reportedly plans to construct five sites in 2029 and add ten more in 2030. The estimated cost per site in 2029 is around $85 million. These facilities could potentially process packages up to 2.5 times faster than current designs, according to the document.

However, an Amazon spokesperson stated that this is an "early-stage concept" and that the specific financial figures and roadmap mentioned in the document are "not accurate and do not reflect our current plans." The spokesperson added, "We are always exploring and testing new technologies across our operations to improve safety and the customer delivery experience. As with any early-stage concept, this is one of many projects we regularly evaluate, and our plans can change as we learn and gain new insights."

Project Tetromino highlights Amazon's push to automate some of the most challenging aspects of its logistics network. Sorting packages and loading them into delivery vehicles within distribution centers has historically been difficult and costly to automate. Competitors such as FedEx, UPS, and DHL are also investing in robotics and AI for their logistics operations.

The company stated that initiatives at its delivery stations are designed to "work alongside and empower our employees, who remain at the core of our operating model."