Thanks @hrmqr real data and real receipts.
#NCSWICAmazon, which is leaving Quebec, has received hundreds of millions of dollars in public funds
Cloud contracts, equipment purchases, Hydro-Québec discounts; the American giant is a subscriber to public funds

Nicolas Brasseur, Charles Mathieu, Raphaël Pirro and Marie Christine Trottier
Thursday, January 23, 2025 00:00
UPDATED Thursday, January 23, 2025 00:00

The Amazon empire, which has just laid off 1,700 workers in Quebec, is a subscriber to public funds of all kinds. Its lobbyists convinced both the provincial and federal governments to spend tens of millions on cloud computing services for the American giant. Also, there are countless government agencies and cities that order items from Amazon. Not to mention the Hydro-Québec discounts granted to Jeff Bezos' firm over the years. The Journal takes a look at the issue.

$100 million from Quebec
Quebec departments and public agencies have signed nearly a hundred contracts with Amazon totaling more than $100 million since 2018. The vast majority of these concerned expenses for cloud services.

The most expensive contract dates from 2023, when the Ministry of Cybersecurity and Digital Technology acquired “cloud infrastructure” for $31 million. This department is by far the one that spent the most on the web giant’s services, with $56 million.

The amounts do not include the departments’ numerous credit card expenses to purchase items on Amazon. These totaled $2.2 million between 2021 and 2024.

$145 million from Ottawa
The federal government is also a very good customer of Amazon. Since 2020, Ottawa has signed contracts with a cumulative value of at least $145 million and could be much higher.

Here again, it is mainly the cloud services of Amazon Web Services (AWS) that are in demand. AWS is also used for its information technology (IT) consulting services.

Jeff Bezos’ company has its paws in a host of departments, which sometimes 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 largest clients in Ottawa.

Ottawa has not clearly stated whether it intends to cease its business with Amazon, whose lobbyists are in regular contact with officials and MPs.

Many purchases by cities
The 19 largest cities in Quebec have spent at least $3.2 million since 2020 on Amazon, requiring more than 10,000 transactions using their credit cards.

Office supplies such as mice, keyboards and chargers are among the purchases made by civil servants.

The City of Montreal is at the top of the municipalities with more than $1.3 million in purchases on Jeff Bezos' platform. Next come the cities of Saint-Jérôme ($394,000), Lévis ($251,000), Laval ($234,000) and Saint-Jean-sur-Richelieu ($164,000).

At least two public contracts have also been concluded between the cities of Montreal ($442,653.75), Quebec City ($34,492.50) and the multinational for needs related to its AWS cloud service.

Operation seduction
In Quebec City as in Ottawa, Amazon lobbyists are increasing their efforts with public decision-makers. In recent years, the American giant has called on the services of government relations firms in addition to having in-house lobbyists.

In Quebec, they have knocked on the doors of 47 institutions to present their services, obtain contracts and talk about expansion. Key players such as Hydro-Québec, the Centre d’acquisitions gouvernementales, Investissement Québec and the Ministère de l’Économie are being approached, among others.

At the federal level, some fifty ministries and agencies are being approached to discuss issues such as regulation, international trade and economic development.

Low-cost electricity
Le Journal had revealed in 2019, shortly before the establishment of Amazon’s data centre in Varennes, that the company would benefit from very advantageous agreements regarding the price of electricity and the power supplied.