Do Amazon Parrots build nests? If so, out of what materials?

Answer 1

The only parrot that builds a nest is the Quaker Parrot. Also known as the "Monk Parakeet", they are capable of building huge "Condos", often in trees, but in South Florida, they are known to build them on Power Line Poles and transformers. See this for an overview on Quaker Parrot nests.
http://www.quakerville.com/
All other wild parrots use tree hollows, Holes, and any other available hiding places already in existance.
That is why losing their habitat by cutting down trees is an issue. If there are no trees with holes in them, they cannot roost with their babies. If that is the case, they won't breed, as they have no safe place for their eggs.

For more information:

http://www.parrotsinternational.org/index.html

Answer 2

Amazons do build nests in the wild. But if you are trying to breed yours, just buy a breeder box. Or you could build one out of plywood. I know a guy who has 55 gallon barrels hung in his outdoor aviary. He gets 14 or 15 chicks a year with his set up.

Answer 3

In the wild, they often nest in the hollow of a live tree on a layer of chips. In captivity, we would hope to duplicate this natural nesting activity as nearly as possible.