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Home»Real Estate»Savills Blog | Protecting Power: Why Grid Capacity Is Becoming Critical in Logistics Real Estate
Real Estate

Savills Blog | Protecting Power: Why Grid Capacity Is Becoming Critical in Logistics Real Estate

By CharlotteJune 30, 20261 Min Read
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Recent examples highlight how critical power availability has become:

At a site we manage, a prospective tenant expressed strong interest but only if the site’s capacity could be increased from 500kVA to 5MVA (a tenfold increase). At the time, the required upgrade was relatively straightforward, with estimated costs of circa £100,000 for new switchgear and a short connection to the substation. The letting did not proceed.

One year later, a similar requirement emerged from another tenant. However, by then the local substation had reached capacity. The same upgrade was now estimated at over £2 million.

A missed opportunity quickly became a significantly more complex and costly challenge.

 



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