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Amazon’s $1 Billion Warehouse Gambit Shakes Up Holbrook

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Published on July 24, 2026
Amazon’s $1 Billion Warehouse Gambit Shakes Up HolbrookSource: Unsplash/ Yender Gonzalez

Holbrook could be staring down a massive change in its backyard. Amazon has filed plans for a roughly $1 billion logistics campus that would span about 4.2 million square feet and, if it gets the green light, become the company’s largest operation on Long Island. The blueprint calls for two connected warehouses on about 140 acres east of Long Island MacArthur Airport, an operation expected to bring around 1,000 full-time jobs and move hundreds of tractor-trailers through the site over any given 24-hour stretch. Company representatives say the project will need a zoning change and likely tax incentives before any shovels hit the ground.

According to The Real Deal, the filing outlines a 3.7 million-square-foot sortable fulfillment center paired with a 450,000-square-foot vehicle pickup building near the Sunrise Highway service road and Beacon Drive. The documents project about 300 heavy-truck movements per day and describe a facility that runs around the clock. A separate summary by ParkPoint Group pegs the project’s value at close to $1 billion and warns that a complex of this scale would ratchet up land-use pressure along the already busy Vets Highway corridor.

Amazon’s regional economic development director, Brad Griggs, told reporters the company plans to apply to the Town of Islip’s Industrial Development Agency for tax relief, adding that the project “won’t be built without the tax relief,” as reported by The Real Deal. The land is owned by Indianapolis-based Scannell Properties, and Amazon says construction would take roughly 18 to 24 months once all necessary approvals are secured.

People who live near the site say local roads already feel overloaded and worry that a major freight hub would push neighborhood streets past the breaking point. “They're going to have to figure out the traffic… The entrance to this place is a nightmare getting in,” one resident told News 12 Long Island. Amazon has submitted a traffic study to the town and, according to the Long Island Press, the filing lays out proposed infrastructure upgrades that the company says will help keep congestion in check.

What happens next

Town of Islip officials say the application is just the opening move in a lengthy approval process. The filing will go through federal, state and local review, including an environmental review under SEQRA, and “receipt of an application does not constitute approval or indicate any determination regarding the merits of the proposal,” a town spokesperson told News 12 Long Island. The proposal is expected to head to local planning boards and other agencies and could trigger public hearings, multiple sign-offs and a rezoning decision before any building permits are issued.

Scale and local context

Developers and market watchers say a single campus of this magnitude would recalibrate industrial demand on Long Island and further tighten already scarce land for other uses. ParkPoint Group notes that the complex would anchor long-cycle logistics demand in a submarket with limited developable land, and that fights over traffic and entitlements are par for the course with hubs of this size.

Legal and incentives to watch

The site was rezoned away from industrial use more than a decade ago, so switching it back would require a formal rezoning process as well as a likely incentives package from the Islip IDA, according to The American Developer. The Long Island Press also reports that Amazon has told officials it currently has no plans to run delivery drones out of the Holbrook campus.

If the town and various agencies choose to advance the application, residents and officials alike should brace for months of hearings and technical reviews that will zero in on traffic mitigation and the structure of any tax breaks. Whether the project ever comes out of the ground will ultimately depend on the rezoning vote and on whether the IDA signs off on the incentives package Amazon says it needs.