Amazon is expanding its domestic robotics manufacturing footprint as automation becomes increasingly central to the economics of its logistics network. The company plans to invest more than $100 million in a new advanced manufacturing facility in Greenwood, Indiana, adding production capacity as Amazon continues deploying robots alongside human workers across its fulfillment operations.

Amazon Doubles Its Dedicated Robotics Manufacturing Footprint

The Greenwood facility is expected to begin operations by 2028 and will cover approximately 585,000 square feet. Amazon expects the project to create 300 manufacturing and engineering positions, with average annual pay approaching $100,000. The facility will produce equipment supporting Amazon’s fulfillment and robotics operations across North America.

The investment follows Amazon’s August announcement of another robotics manufacturing facility in Austin, Texas. That facility is expected to create 300 to 500 manufacturing and engineering jobs and will produce robotics systems designed to work alongside employees in fulfillment operations. Together, the Indiana and Texas projects are expected to double Amazon’s number of robot-making facilities from two to four.

The expansion is strategically relevant because Amazon does not simply purchase automation equipment at scale; it has developed substantial internal robotics capabilities since acquiring Kiva Systems for $775 million in 2012. The company now operates one of the largest industrial robotics networks connected to a retail and logistics platform.

One Million Robots Changes the Fulfillment Model

Amazon says it has manufactured and deployed more than 1 million robots across its global fulfillment network. Those machines operate across more than 300 facilities and assist with approximately 75% of customer orders delivered worldwide. The company’s robotics systems include machines designed for sorting, lifting, transporting and handling inventory, allowing automation to become integrated into multiple stages of warehouse operations.

The scale matters because robotics can influence Amazon’s cost structure beyond simple labor substitution. Amazon has said automation can help improve delivery speed, increase operational efficiency and reduce workplace injuries, while also creating demand for technicians, engineers and other specialized roles responsible for maintaining and operating increasingly complex systems.

Amazon has also introduced DeepFleet, a generative-AI foundation model designed to coordinate the movement of its robotic fleet. The company says the system can improve robot travel time by 10%, illustrating how physical automation and AI software are increasingly being developed as a combined operating system for logistics.

AI and Robotics Are Becoming Increasingly Connected

The new manufacturing facilities are not limited to conventional industrial automation. Amazon says the Greenwood plant will incorporate advanced fabrication, robotic welding, automated powder coating and assembly, supported by AWS and AI-powered smart-manufacturing systems. That combination gives Amazon greater control over both the physical equipment and the software infrastructure used to manage its operations.

Amazon is simultaneously expanding its work in physical AI. In August, AWS and Nvidia announced plans to collaborate on next-generation robotics using Nvidia’s Jetson platform, Isaac robotics software and Omniverse simulation technology. The partnership covers simulation, synthetic-data generation, robot training, route optimization and real-to-sim validation, suggesting that Amazon’s robotics strategy is increasingly tied to its broader AI infrastructure ambitions.

For Amazon, the economic question is whether greater automation can continue increasing throughput and productivity while controlling the costs associated with labor, facilities, energy and delivery. The company says its robotics investments have already contributed to improvements in workplace safety, while its broader fulfillment network continues to require substantial capital and technological investment.

What Amazon’s Robotics Expansion Means for the Business

The Indiana investment is relatively modest compared with Amazon’s overall capital requirements, but its strategic significance lies in scaling internal automation capacity. Producing more robotics equipment domestically could give Amazon greater control over technology deployment, manufacturing timelines and the design of machines tailored specifically to its fulfillment network.

The company is also becoming more vertically integrated across the automation stack: it develops robots, manufactures them, deploys them in fulfillment centers and increasingly uses AI to coordinate their movements. That feedback loop could provide Amazon with operational data that can be used to refine future generations of machines and software.

The next indicators will include the pace at which the Indiana and Austin facilities become operational, the number and types of robots Amazon deploys, productivity improvements across fulfillment centers and the financial impact of automation on operating costs. The longer-term question is whether Amazon’s robotics investment remains primarily an internal efficiency program or eventually develops into a broader technology platform serving customers outside its own logistics network.