Amazon's decision to not go forward with an up to 40,000 worker expansion in Queens is being cheered by opponents, but upstate lawmakers and business leaders are concerned it could have an impact on the overall economy of New York.

"All of the state and city of New York was going to benefit, including the Capital Region. I think this sends a chilling effect that New York is not friendly to business. That's the most troubling part of this," said Pat Fahy (D) Assembly, Albany.

Fahy says she was skeptical of the $3 billion in tax incentives Amazon was due to recieve if it created the jobs, and she had concerns with the company's anti-union stance. But business officials, including the Business Council, pointed to the loss of tax revenue that Amazon would have generated.

"All that's a ripple effect. And now the big question is what's the ripple effect moving forward for other large businesses who want to come to New York State; whether it's New York City, Binghamton, Utica. What's that going to mean looking at this deal? Are they going to still want to come?," said Spokesman for the Business Council Pat Bailey.

The deal was cancelled by the company days after Democrats in the state Senate nominated Sen. Mike Gianaris, a prominent critic of the project, to a state board that could have had veto power over the tax breaks.

"What happened today is the people of New York stood up [and] said I have some questions about this deal. Instead answering those questions, Amazon took its ball and left town," Gianaris said.

Amazon's proposal also came amid a moment of political upheaval for New York, as populist progressives like Congresswoman Alexandria Ocasio-Cortez have stoked opposition to tax breaks for major corporations.

"To give away $3 billion to a company that has a history of worker exploitation, that's paying below what the cost of New York City is, is not acceptable for us," Ocasio-Cortez said.

Several upstate counties on Thursday signaled they would be open to Amazon's project in their communities, but the company has no plans to re-open its search.