Three Amazon engineers urged Seattle officials to restrict mega AI data center development on Wednesday—arguing their employer is pouring tens of billions into compute while cutting more than 30,000 corporate jobs since October.
The Seattle City Council’s Land Use and Sustainability Committee unanimously approved a one-year moratorium on new large-scale AI data centers so the city can draft regulations—a move that joins a widening backlash against hyperscaler infrastructure spending.
What Engineers Said at City Hall
Patrick Schloesser, a software engineer at Amazon Web Services with nearly six years at the company, told the hearing:
“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. 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 asked Seattle to require renewable power for facilities, end opaque project announcements via NDAs and shell companies, ensure good jobs during construction, and impose a new tax funding city jobs when companies conduct large layoffs.
Liesl Wigand, an Amazon employee of more than 12 years, called the company’s AI push 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. “That’s why local governments, in collaboration with community stakeholders, should be setting the terms for data center buildout.”
Darius Irani also spoke. All three are affiliated with Amazon Employees for Climate Justice, a group of current and former workers that has pressed Amazon on climate policy, workforce treatment, and AI guardrails—including a November letter demanding a “more responsible rollout of AI.”
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The moratorium follows four developers approaching a local utility to pitch five large facilities in Seattle, CNBC reported. After public pushback, two developers withdrew proposals, per the Seattle Times.
Seattle adds to a national trend: the National Conference of State Legislatures counted 14 states considering legislation to pause or ban new data centers. Data Center Watch found at least $156 billion in projects blocked or delayed in 2025 amid local opposition and litigation.
Amazon’s Layoffs vs. Capex Plans
CEO Andy Jassy has cut more than 30,000 corporate roles since October as part of a drive to remove management layers and run Amazon like the “world’s largest startup.”
At the same time, Amazon in February said it plans $200 billion in capital expenditures in 2026, mostly for AI infrastructure, and reaffirmed that forecast in April.
Across Big Tech, Amazon, Microsoft, Google parent Alphabet, and Meta have committed roughly $700 billion in combined capex this year—mostly AI data centers—while many firms continue cost cuts including layoffs, CNBC noted.
Amazon’s Response
An Amazon spokesperson told CNBC the company respects colleagues’ right to voice opinions and said:
- Amazon has no current plans to build data centers within Seattle city limits
- Where it does operate, it aims to be a responsible neighbor with investments in local economic development
- It prioritizes water and energy efficiency above industry norms
- It is working toward carbon-free power, greater efficiency, and returning more water than it uses by 2030
Broader Context: Buildout vs. Backlash
The Seattle hearing highlights a tension running through the AI economy: hyperscalers racing to secure power and land for training and inference while communities and employees question who bears the cost—grid strain, water use, housing pressure, and job displacement.
CNBC’s coverage also noted deepening ties between OpenAI and Amazon as some relationships with Apple fray—underscoring that infrastructure bets are strategic, not only environmental, debates.
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Bottom Line
Amazon engineers put a human face on the data-center backlash: layoffs upstairs, billion-dollar AI concrete and steel downstairs. Seattle’s unanimous one-year pause is a local checkpoint in a national fight over whether Big Tech’s compute sprint needs stronger community terms—or will keep outpacing regulation and worker sentiment alike.
Frequently Asked Questions
Q: What did Seattle approve on June 3, 2026?
A: The council’s Land Use and Sustainability Committee voted unanimously for a one-year moratorium on new large-scale AI data centers while the city develops regulations.
Q: How many Amazon corporate jobs have been cut recently?
A: CNBC cited more than 30,000 corporate layoffs since October, part of CEO Andy Jassy’s effort to flatten the organization.
Q: Does Amazon plan to build data centers inside Seattle?
A: A company spokesperson told CNBC there are no current plans to construct data centers within Seattle city limits, though developers had pitched large projects to local utilities.
