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Power access moves to the centre of warehouse investment decisions

Grid availability is becoming a material commercial risk for warehouse developers as automation, cooling and fleet electrification increase demand.

Power access moves to the centre of warehouse investment decisions

Access to electricity is emerging as a decisive factor in UK warehouse development. Developers must now assess not only whether land can be permitted and built on, but whether the site can obtain enough power for current operations and future expansion.

George Day, senior project manager at Pulse Consult, points to growing competition for grid capacity and Ofgem’s consultation on network reforms as evidence that connection delays are becoming a material delivery risk.

Power access moves to the centre of warehouse investment decisions

The issue is being driven by the changing operating model of logistics facilities. Automated handling equipment, refrigeration, digital control systems and charging infrastructure all add to demand. Occupiers may also increase their load after opening as throughput rises or fleets become more electric.

Developers therefore need to plan for the building’s eventual power requirement, not simply the capacity needed at launch. A connection sized too narrowly can lead to expensive upgrades, delays and limits on an occupier’s growth plans.

Early engagement with distribution network operators should establish available capacity, connection requirements and realistic delivery dates. Those findings should feed directly into site selection, design, cost planning and the wider programme.

Power cannot remain a late-stage utility check. For logistics companies, it is increasingly a condition of project viability and a factor that can determine whether a proposed warehouse is genuinely fit for its intended technology and operations.

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