Powering Logistics: How Warehouses Become the Next Energy Platform

When the power goes out, so does commerce. For logistics companies, the stakes are rising fast as energy demand outpaces supply.

The International Energy Agency expects global electricity demand to climb to 3,500 terawatt hours over the next three years—roughly equal to adding the entire annual electricity consumption of a country like Japan to the global grid each year. That surge is being driven, in part, by AI, EV charging and the electrification of buildings. Supply isn’t keeping up.

Logistics Meets the Power Challenge

Logistics has always been about moving goods efficiently. Increasingly, it’s also about moving electrons efficiently.

Inside warehouses, as companies look to more efficiently meet customer expectations, they are turning to tools like automation, robotics and real-time tracking systems. These technologies, along with AI, are driving new demands for power. Electric vans, yard vehicles and long-haul trucks require charging infrastructure at industrial sites. As buildings became “smarter” with technology like IoT-enabled lighting, HVAC and sensor systems, that too increases the energy demand.  

Increasingly, the end customer—you and me—expect speed, transparency and lower emissions—and every one of those services relies on reliable power.

Our power grid was built for a different era, with big plants sending electricity out through regional transmission lines. But that model can’t keep up anymore. One storm, cyberattack or shortfall in capacity is enough to shut everything down. It’s time to rethink the system and build something more resilient.  

From Passive User to Active Platform

Buildings should no longer be treated as passive power consumers. Real estate is a platform for generation, storage and smart load management. In fact, I joined Prologis—the world’s largest owner of logistics real estate—because of the opportunity to help build that energy platform.  

Distributed systems—from rooftop solar to on-site batteries to modular microgrids—bring power closer to the point of use. This shift does two things:

1. It makes logistics operations more resilient.
2. It strengthens the grid by reducing pressure on aging infrastructure.

Prologis’ heavy-duty truck charging hub in Torrance, California, is one example. The facility runs entirely on behind-the-meter microgrids, powering up to 96 trucks at once. When we learned that grid power was not readily available to energize this project, we worked to bring bridge power to enable our customer’s fleet electrification.

Energy as Competitive Advantage

In the past, energy supply was rarely a priority for C-suite leaders. Today, however, the availability of reliable power has become a critical factor in determining whether sites can open, scale or attract tenants. Energy delivery is now emerging as a competitive advantage on par with location.

At the same time, distributed energy platforms are unlocking new possibilities. When coordinated across a portfolio, they can ease peak demand, participate in energy markets and even function as virtual power plants—creating value for both operators and the grid.

The Next Frontier: Energy Security, Resiliency & Flexibility

In logistics, the next wave of competition won’t be defined solely by speed or location—it will be defined by power. The companies that view energy as core infrastructure, rather than just another operating expense, will be the ones positioned to lead and thrive.

For more on the future of energy, tune into my conversation with Dr. Arun Majumdar, dean of the Stanford Doerr School of Sustainability, on the Moving the World podcast, available on Spotify, Apple Podcasts and YouTube.