July 14, 2025

Amazon is planning to expand its presence in Sioux Falls with an additional location at Foundation Park.

Amazon.com Services LLC purchased almost 32 acres recently from the Sioux Falls Development Foundation.

By comparison, the company’s regional fulfillment center — the building to the right in the photo above — sits on 83 acres. It began operations in late 2022.

In a statement, an Amazon spokesperson confirmed the company has purchased the property “with the intent of opening an operations facility in the area to continue to provide faster delivery and great service to local customers,” she said. “We’ll share more when we can.”

Amazon currently uses leased space in north Sioux Falls along 60th Street North as a delivery station.

A building permit was issued at Foundation Park recently to Ryan Cos., which built Amazon’s fulfillment center. It’s valued at $23.4 million.

“We had a great working relationship with Amazon to get the fulfillment center there … so I think they were impressed with that, and when they had the opportunity to look at the site right across the street, I think they thought it was a good way to add on to what their value proposition is in that park,” said Bob Mundt, president and CEO of the Sioux Falls Development Foundation.

“They’ve been very happy with that. It’s one of their most productive facilities, so we’re really happy with that too.”

Amazon’s latest deal leaves two lots remaining south of the railroad tracks at Foundation Park — one is 22 acres with rail and the other is 18 acres to the east of the FedEx buildings. The sale of a 4-acre lot to a local buyer is expected to close next month.

On the north side of Foundation Park, there are about 180 acres available between the railroad tracks and the location of shared warehouse space for Avera Health and Owens & Minor. There also are 160 acres north of Memory Lane, including the recent purchase of a 25-acre farmstead that rounded off that property.

“It’s a decent amount unless they keep buying in 100-acre chunks, which we like, but with everyone who buys that much ground, we say, ‘What’s the life expectancy of Foundation Park?’ without us having to sacrifice flexibility,” Mundt said.

“If you get a data center that comes in and they need 180 acres, and another couple we’re dealing with are 40 or 50 acres, another one is 80, so they’re bigger ones. And we’re focused on 20 acres and up so we don’t compete with private developers.”

CJ Schwan’s has walls going up and recently received building permits for its wastewater treatment plant, he said.

“When you get a name like CJ or (Amazon) or any names people recognize off the street, it’s like it’s for real. We have big-time companies looking at us, and I think that’s important,” Mundt said.

“I think when people see progress and construction out there, that creates the synergy we need for everyone else to look there and see things are still happening, there’s still ground left, and if we’re interested, we have to take a look.”