Seattle-based Amazon, a giant in retail and cloud computing, will take 150,000 square feet former warehouse right by the Fort Point Channel, which separates Boston from South Boston, according to the report.
Amazon (amzn) already has a large outpost in Cambridge's Kendall Square tech hub, which is also home to local offices for Google (goog), VMware (vmw), Oracle (orcl), Microsoft (msft), and other tech giants.
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This week, Red Hat (rhat) officially launched a new engineering lab and briefing center in South Boston. And part of the reason Progress Software bought Kinvey, an application development specialist, is to use that company as a downtown Boston center. Progress, itself, is based in the Boston suburbs.
Many companies find it easier to hire top tech talent from area colleges and elsewhere if they can offer downtown locations close to amenities and mass transit. South Boston's proximity to Logan Airport in theory makes it easy for out-of-towners to come in for meetings, provided they can navigate the already hellacious local traffic.
Fortune contacted Amazon for comment and will update this story as needed.