The Energy Gap: Why Supply Chains Can’t Wait for the Grid

Logistics real estate has always hinged on one principle above all: Location is paramount. For this property type, this has meant proximity to sites near major ports (sea/air), highways and labor availability. In today’s rapidly evolving landscape, another variable has become equally crucial: reliable energy infrastructure. 

Expanding a prime, high-volume warehouse to meet surging demands can sometimes mean facing a multi-year wait for grid connection. Even the best locations lose their advantage without reliable energy to support operations. That is why Prologis created an on-site microgrid solution, enabling your facilities and fleets to run on your timeline.  

What looks like a challenge is, in fact, an opportunity. Filling your energy gap while competitors face disruptions can be a significant competitive edge. Tailored solutions that leverage intelligent infrastructure from portable generators, microgrids, hydrogen fuel cells and other renewable energy solutions can deliver resilient energy when you need it, ensuring supply chains keep moving without compromise.

When time-to-power challenges business continuity

The causes of energy delays are complex, systemic and widespread. The common denominator among them all is rising demand on our energy infrastructure. Utilities are working under extraordinary pressure as they improve the grid and manage unprecedented requests.

Grid interconnection queues are ballooning, with average wait times now stretching to five years for many new development projects. Surging requests are overwhelming utilities that were already faced with navigating complex upgrades to support the energy transition. Transformer shortages compound the problem, as raw material constraints have quadrupled lead times to more than two years. Utilities are essential partners in navigating these pressures. They are modernizing grids and balancing stability under extraordinary demand. For businesses, though, these challenges often cascade into project delays, added costs and operational risks.

Projects stall—driving up expenses, exposing operations to price volatility and forcing reliance on costly backup logistics. In high-demand sectors like logistics and manufacturing, these delays can ripple through your entire supply chain, disrupting everything from inventory management to production timelines and customer fulfillment.

Consider the numbers: In the U.S., over 2,300 gigawatts of proposed energy are in interconnection backlogs, with many infrastructure projects waiting up to five years for power. In logistics-heavy industries, these power gaps heighten risks from outages and volatility, potentially adding 15%–20% to operational costs through inefficiencies and lost productivity.  

On-site microgrid solutions: A versatile bridge to resilient energy

Prologis microgrids are a versatile suite of technologies designed to deliver fast, reliable energy tailored to your specific needs. Think of microgrids as both a bridge over the energy gap, keeping your operations moving without compromise and a multi-purpose solution adaptable for the long term. From portable generators that deploy in weeks to hydrogen fuel cells and sophisticated long-term solutions, microgrids adapt to your timeline and goals, ensuring resilience in an uncertain world.

Leveraging Prologis’ expertise and resources allows you to unlock rapid operational readiness to achieve your business goals.  

Consider our 2024 project with Maersk. Maersk was facing a two-year wait on the grid upgrade needed to support their transition to an electrified heavy-duty fleet as the local utility worked on infrastructure upgrades. In response, we developed an innovative charging solution that provided immediate support. We installed a microgrid capable of operating independently of the local grid and provided Maersk the needed charging infrastructure to charge 96 heavy-duty electric trucks simultaneously. We built Southern California's largest heavy-duty EV charging depot powered by microgrid, and delivered in just months, enabling Maersk to move forward years ahead of schedule.

Pioneering the path to supply chain resilience

Prologis microgrid solutions aren't a one-size-fits-all solution. We work with you to assess your site’s unique demands. That might mean an interim approach for a new distribution center handling fulfillment, a resilient setup for a fleet operator’s charging hub or a future-ready microgrid for a light manufacturing facility that optimizes automated assembly lines. By combining cutting-edge technology with our global footprint, expertise in distributed energy and vast network of partners, you can ensure your energy is cost-effective, sustainable and ready for the demands of tomorrow’s supply chain.

Energy shortages are a real challenge, but they can be turned into an opportunity and competitive advantage. With microgrids you can bridge today’s gaps, scale operations  and electrify fleets with confidence. Working alongside utilities, we help you move forward on your timeline while the grid evolves for the future.