Amazon.com Inc.’s highly publicized plan to build a $2.5 billion corporate campus in New York may be at risk of cancellation, according to a new report.

The Washington Post today cited sources saying the company is considering relocating the project because of a backlash from local politicians and activists.

Much of the criticism so far has focused on the generous incentive package Amazon stands to win for choosing to build the campus in New York. According to estimates, the online retail giant will receive more than $1.7 billion in state and city subsidies if the expansion goes ahead.

Opponents also expressed concern about the effects the campus may have on local residents. Amazon intends to employ more than 25,000 people at the Queens borough set to host the hub, which is likely to increase demand for housing and raise real-estate prices, potentially significantly.

Amazon and the officials who support the project, for their part, have touted its potential to boost the local economy. The campus is expected to generate as much as $27.5 billion in tax revenue over the next 25 years, but it continues to draw criticism from detractors.

Two of the sources who spoke with the Post said that Amazon executives have held multiple discussions to “reassess the situation” and explore alternative locations. The company has received a much warmer welcome in Arlington, Virginia, where it’s building another $2.5 billion campus with an expected 25,000-person workforce. The state legislature last month approved a $750 million incentive package for the project after just nine minutes of debate.

There’s apparently not much holding Amazon back from relocating the planned New York campus. The company reportedly hasn’t leased or rented any real estate yet and is said to be expecting regulatory approval in 2020 at the earliest. However, finding a city willing to match the sizable incentives offered by New York would likely be difficult, not to mention that starting the search from scratch could delay Amazon’s aggressive expansion roadmap. 

Photo: Amazon