COMMENT Fleet electrification is accelerating. Major logistics operators such as DHL, Royal Mail and BT have all committed to fully electric fleets by 2030. But are warehouses and logistics hubs ready to support this shift with the right vehicle charging infrastructure? Right now, most aren’t.
The UK is set to become Europe’s largest EV sales market, with nearly one in three vehicles sold in December 2024 being electric. But while fleet operators are electrifying at pace, the infrastructure they rely on is struggling to keep up.
Meanwhile, delivery patterns are changing. The rise of same-day delivery and rapid grocery services means more vehicles on the road, shorter turnaround times and an even greater need for efficient charging. Any fleet downtime caused by charging delays is hugely disruptive.
For logistics businesses, electrification is a necessity – fuel costs, sustainability commitments and incoming regulations all make it critical. With the UK shipping 3.9bn parcels in 2023/24 – more than 7,400 per minute – the scale of deliveries underscores the urgent need for cleaner transport solutions. At the same time, communities are increasingly pushing for better air quality to address health concerns, adding further momentum to the shift from diesel fleets. For landlords, however, this presents challenges.
Sizing the problem
Most logistics facilities aren’t designed for large-scale EV charging. Retrofitting later can be expensive and disruptive. Current regulations require just 10-20% of parking spaces to be EV-ready hubs – a figure that in many cases won’t reflect the actual operational needs of electrified fleets. As tenants seek facilities supporting 100% electric operations, warehouses that fail to adapt risk losing occupiers and becoming stranded assets.
Yet this shift also presents an opportunity. Warehouses with sufficient EV charging will command premium rents and attract high-quality occupiers. Developers who act now to properly assess the needs of electric fleets can future-proof their portfolios, ensuring higher rental yields and long-term asset value.
One of the biggest barriers to installing EV charging infrastructure is power availability. Logistics hubs, particularly in urban centres, compete for limited grid capacity, alongside other energy-intensive sectors such as data centres. Delays in securing grid connections could push back operational timelines by several years, affecting rental income and asset liquidity. Some logistics sites have already faced multi-year waits for grid upgrades.
To mitigate this risk, strategic energy planning must become standard practice. Investors need to consider: can the grid support large-scale fleet charging at a specific site? How can they accurately predict how power demand will evolve as tenants electrify? What’s the best mix of onsite generation, battery storage and grid supply to future-proof assets?
A data-driven strategy is key. Advanced modelling tools, such as our StratEV, can help investors and developers identify the right solution, ensuring capital is spent efficiently while maximising tenant appeal. These tools evaluate site-specific power constraints, fleet usage patterns and tenant demand to create a tailored EV strategy, preventing over-investment while building in scalability and keeping sites attractive to occupiers.
For ultra-urban warehouses, these challenges are even more acute. These hubs are designed for rapid last-mile deliveries but limited land space makes large-scale charging infrastructure difficult. Unlike larger distribution centres, ultra-urban hubs lack the flexibility to expand or repurpose existing space for charging, making power constraints an even bigger operational risk.
Without a reliable power and charging infrastructure strategy, ultra-urban hubs will struggle to attract occupiers. Logistics tenants prioritise low downtime and operational efficiency, meaning power availability could soon become as important as square footage in rental negotiations.
Energy resilience
Logistics operators and landlords need a more strategic approach to energy resilience. Solutions include opportunity charging, where fleets top up batteries along their routes, reducing reliance on depot charging; onsite battery storage to smooth out demand spikes; and peer-to-peer charging networks where businesses share charging infrastructure.
For investors, the implications are clear. We are building the logistics infrastructure of the 2030s today, and hubs that fail to integrate the necessary infrastructure for EV fleets will lose appeal and value. Meanwhile, those designed for fully electrified fleets will secure higher rents and attract tenants with long-term commitments.
The logistics sector is evolving, and power infrastructure is now just as crucial as location in determining an asset’s success. Developers must move beyond outdated minimum compliance standards and design for the future. By 2030, warehouses that fail to accommodate EVs will struggle to compete in a market that has moved on. Those who do will not only enable the sector’s decarbonisation but also ensure their assets remain valuable, resilient and commercially competitive in the years ahead.
Ben Bowler is e-mobility and microgrids lead at Stantec
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