Reliable electricity supplies have become the leading consideration for UK businesses planning new logistics facilities, as faster delivery expectations and increased automation influence investment in distribution networks.
Research commissioned by Prologis found that 41% of surveyed UK supply chain decision-makers identified power reliability as a priority when considering their next major logistics location.
Transport access and labour availability were each cited by 28% of respondents, illustrating the importance that electricity infrastructure now holds alongside established considerations such as distribution routes and recruitment.
The UK findings are drawn from the 2027 Prologis Global Supply Chain Outlook, conducted with The Harris Poll. The survey included 262 UK decision-makers holding director-level or more senior positions in organisations employing at least 250 people.
Six in ten UK respondents said rising energy prices had significantly affected supply chain operating costs during the previous 12 months, while 56% reported routinely considering the additional cost of securing reliable power when assessing property acquisitions or leases.
Electricity availability can influence whether a distribution centre can support automated handling equipment, increased storage capacity, and the operating hours required to meet customer demand.
Delivery expectations influence network design —
Faster fulfilment is becoming another important influence on logistics investment.
Among UK respondents whose organisations deliver directly to consumers, 71% said they offered same-day or next-day delivery in 2026, compared with 35% in the survey’s historical comparison for 2019.
Delivery speed and reliability were also the most frequently identified factors when respondents considered how their organisations differentiated themselves from competitors.
Meeting shorter delivery windows can require changes to warehouse locations, stock distribution, and transport arrangements. Businesses may need to hold inventory closer to customers or operate more than one fulfilment location to achieve the required service levels.
Paul Weston, regional head of Prologis UK, said: “Businesses are striving to meet rising expectations for speed and reliability while managing the energy demands of increasingly sophisticated supply chain operations.”
Those demands become more complicated when new locations need to accommodate automated equipment or operate during periods of high electricity consumption.
Automation adds to energy requirements —
Nearly two-thirds of UK respondents, 65%, believed AI and automation were helping their organisations gain an advantage over competitors, while 13% felt that competitors’ adoption was weakening their own position.
Improving operational efficiency was the most frequently cited application, at 61%, followed by workforce decisions at 53% and customer experience at 49%.
These findings reflect executives’ assessments of the technologies rather than independently measured productivity gains.
Companies are also investing in measures intended to manage electricity costs and improve continuity. Forty-seven per cent of surveyed UK organisations reported making or accelerating investment in battery energy storage during the previous year.
A further 46% had invested in long-term renewable electricity agreements, while 43% reported investment in on-site solar or wind generation.
These measures serve different purposes. Energy storage can provide additional flexibility and support continuity in suitable configurations, while supply agreements may help businesses manage exposure to electricity prices. On-site generation can reduce dependence on purchased electricity, although its contribution varies with location and operating conditions.
The wider international study, involving more than 1,800 business leaders, also found that over half had redesigned supply chain routes or network arrangements during the previous year in response to disruption.
The UK results identify electricity reliability as a significant factor in logistics expansion, alongside the commercial demands created by faster delivery and increased use of automation.
