US Industrial properties compete with data centers for access to power

Electricity demand is rising for industrial properties as automation, equipment electrification, and more complex functions are put to work inside of these traditionally low-intensity assets. Industrial users are increasingly competing for power capacity with other high-growth sectors, particularly data centers, where rapidly expanding electricity demand is placing additional pressure on grid infrastructure and availability.

• Warehouse power use is rising sharply. Traditional facilities typically use 2kWh–4kWh per square foot, compared with 6kWh–10kWh in modern distribution centres and 20kWh–30+kWh in highly electrified logistics hubs.
• Power needs now depend more on how intensively a building is used than on its size, widening the gap between basic warehouses and powerintensive facilities.
• Electrification drives step changes in power demand. Automation and onsite vehicle charging significantly increase total electricity use and peak load at individual properties.
• Electricity costs are rising much faster than in the past. US power prices grew by about 4.2% per year over 2019-2024, versus just 0.2% per year over 2014-2019, increasing their impact on operating performance.