Electricity capacity is becoming as important as land, planning and transport access when companies assess new warehouse locations. As logistics facilities adopt more automation, refrigeration and electric vehicles, the grid connection can determine whether a project is technically and commercially viable.
Pulse Consult senior project manager George Day argues that power availability must be examined at the start of development rather than treated as a final utility check. Ofgem’s work on reforms to network capacity has underlined the growing competition for connections and the risks created by long waits.
Technology is raising the load
Modern distribution centres often require electricity for automated storage and retrieval systems, conveyors, control platforms, refrigeration and charging infrastructure. The demand may also rise after opening as operators add equipment, increase throughput or electrify vehicle fleets.
That makes a day-one connection an insufficient planning target. Developers need to establish both the immediate load and the facility’s likely ultimate requirement. If future capacity is ignored, an occupier may later face expensive upgrades, revised programmes or restrictions on expansion.
Power belongs in the critical path
Connection studies and discussions with distribution network operators can affect site selection, design and commercial assumptions. Delays can cascade into missed milestones, higher costs and uncertainty for prospective occupiers.
The recommended response is early due diligence: identify the available capacity, understand connection timing and test whether the proposed site can support the building’s technology roadmap. Planning, design, commercial, project controls and operations teams should share that information, rather than leaving it to a single specialist workstream.
For logistics companies, the implication is straightforward. A warehouse that cannot support its automation strategy is not future-ready, regardless of how attractive the building or location may initially appear.
