According to a report in The Washington Post, two officials familiar with the company's strategy said that Amazon may not move forward with its proposition to bring 25,000 jobs to the Queens neighborhood of Long Island City, given that local politicians and activists are fighting against the project.
Governor Andrew Cuomo, who has touted the deal to bring Amazon to NY, criticized state Democrats.
Much of the opposition stems from the billions in tax incentives that New York City and New York state want to give to the world's wealthiest company, which is owned by one of the world's wealthiest men.
Alphabet Inc's Google said in December it would invest more than $1 billion on a new campus in NY, becoming the second major technology company to pick America's financial capital to expand and create thousands of jobs.
Amazon also said it would build a new operations center in Nashville, Tenn., that will create more than 5,000 jobs. "Amazon is a billion-dollar company". Michael Gianaris (D-Queens) also opposed Amazon's expansion there, telling the Fox Business Network that his goal was to see the deal "thrown into the garbage".
"We're focused on engaging with our new neighbors - small business owners, educators, and community leaders", it said.
But, the source said, "There are some folks making it clear (in New York) that Amazon will never come to NY".
This past month, a leading critic of NY subsidies for Amazon's plan to build a second headquarters in Queens was nominated to serve on a state board with the power to reject the project. "This is the beginning of a process where the public and the City Council and other elected officials are going to continue to seek answers and understand whether or not this is a good deal for New York City, or if we got played".
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No specific plans to abandon the NY location has been made.
He told the Guardian: "Amazon has extorted NY from the first day of this process, and this seems to be their latest effort to do that. Yes, they can", she said in a Tweet.
The source noted that Amazon was still working toward winning approval from NY officials and has not yet given up completely on NY as the location of their headquarters, which plans to create 25,000 Amazon jobs. "It is irresponsible to allow political opposition to overcome sound government policy", said Cuomo.
Cuomo said there's always not-in-my-back-yard opposition to projects and change - but admitted being taken aback by the ideological resistance to the Amazon deal in the Senate.
"If the Amazon deal falls apart, they will have nobody to blame but themselves. It's not over, but I'm proud of the values we fought for".
Amazon has mailed flyers to Queens residents touting the economic benefits of its NY expansion.
Among other things, Amazon said it would hire from "across the five boroughs", offer career training for local residents and bring in over $27 billion in state and local tax revenue that can help "improve subways and buses".
NY also offered up to $505 million in subsidies.