Amazon Leaves Quebec After Receiving Hundreds of Millions in Public Funds

The Amazon empire, which laid off 1,700 workers in Quebec, contributes to various public funding. Its lobbyists persuaded the provincial and federal governments to invest tens of millions of dollars in cloud computing services for the American conglomerate. In addition, several government agencies and towns place orders with Amazon. Not to mention the discounts Hydro-Québec has extended to Jeff Bezos' company throughout the years. The Journal examines the topic.

$100 Million in Funding from Quebec

Since 2018, Quebec's ministries and public agencies have signed roughly a hundred contracts with Amazon for more than $100 million. The great majority of these were related to cloud computing service expenses.

The most expensive contract dates back to 2023, when the Ministry of Cybersecurity and Digital Affairs paid $31 million for "cloud infrastructure". This ministry spent $ most million on the web giant's services, $56 million.

The figures do not include the departments' frequent credit card purchases from Amazon, totalling $2.2 million between 2021 and 2024.

$145 Million in Funding from Ottawa

The federal government is also a loyal Amazon customer. Since 2020, Ottawa has inked contracts worth at least $145 million and potentially much more.

Again, Amazon Web Services (AWS) cloud services are in high demand. AWS is also known for its information technology (IT) consulting services.

Jeff Bezos' corporation has claws in several agencies, which occasionally sign piecemeal agreements: National Defence, Natural Resources, Revenue Agency, Employment and Social Development, Health Canada, Transport Canada, and the Border Services Agency are among Amazon's most essential clients in Ottawa.

Ottawa has not stated if it wants to discontinue business with Amazon, whose lobbyists constantly communicate with officials and MPs.

Numerous City Purchases

Since 2020, Quebec's 19 largest cities have spent at least $3.2 million on Amazon, accounting for over 10,000 credit card transactions.

Civil servants buy office goods such as mouse, keyboards, and chargers.

The City of Montreal leads the way among municipalities, spending more than $1.3 million on Jeff Bezos' platform. The following cities are Saint-Jérôme ($394,000), Lévis ($251,000), Laval ($234,000), and Saint-Jean-sur-Richelieu ($164,000).

At least two public contracts were signed by the Montreal cities ($442,653.75) and Quebec ($34,492.50) with the multinational for AWS cloud service requirements.

Operation Seduction: An Inside Look

Amazon lobbyists are stepping up their efforts with public officials in both Quebec and Ottawa. In recent years, the American behemoth has sought the assistance of government relations firms in addition to employing in-house lobbyists.

They visited 47 institutions in Quebec to present their services, secure contracts, and discuss future expansion. Key actors include Hydro-Québec, the Government Acquisitions Centre, Investissement Québec, and the Ministry of the Economy.

Approximately fifty federal ministries and groups are addressed to discuss regulatory, foreign trade, and economic development concerns.

Affordable Electricity Solutions

The Journal disclosed in 2019, soon before the opening of Amazon's data centre in Varennes, that the business would benefit from extremely favourable deals regarding electricity prices and power supply.

As with other significant electricity users, the price per kilowatt hour may be as low as 3.95 cents. Amazon would also have been entitled to a four-year rebate: 20% the first year, 15% the second, 10% the third, and 5% the fourth. It should be emphasized that this scheme benefited other data centres.

Hydro-Québec also assumed the costs of connecting the Varennes data centre to the network, projected at $2 million under the Conditions of Service.