The new sites will receive already-packaged goods that would be sorted by location and then sent out for final delivery.
Amazon said the new locations will create hundreds of jobs.
Officials for the City of Milpitas said it expects the entire community to benefit from Amazon's presence. Economic Development Director for Milpitas Alex Andrade said, "It brings new people into our city through jobs and they have an opportunity to spend money here through having a meal or some sort of entertainment."
The site in Milpitas will be located on North McCarthy Boulevard and the hub in Livermore, which is slated to open in 2020, will be located on Longfellow Court near Interstate 580 where the old Circuit City used to be.