Charlotte’s power play

Industrial real estate users in the Charlotte region are increasingly prioritizing access to high-capacity power over traditional site selection criteria. While hyperscale data centers requiring significant energy loads have long dominated this trend, advanced manufacturing firms are now competing for utility-rich sites to support AI and new technologies. This shift reflects a broader transformation in the regional industrial market as energy availability becomes the primary constraint for development.

Power availability has emerged as the critical factor for industrial site selection in the Charlotte region, surpassing traditional priorities. While data centers, particularly hyperscale facilities requiring 75 megawatts or more, have historically driven the demand for high-capacity utility access, the competition for these sites is intensifying. Industrial users are finding that electricity needs are growing across the board, leading to a stiffening market for properties equipped with robust power infrastructure.

The surge in power demand is increasingly driven by the manufacturing sector, which is evolving to incorporate artificial intelligence and other advanced technologies into production processes. These modern manufacturing requirements often necessitate significantly more energy than traditional industrial operations. As Charlotte continues to attract advanced manufacturing firms, the availability of high-voltage connections is becoming a decisive factor in whether a project moves forward or relocates elsewhere.

Local market activity reflects this shift toward production-heavy industrial use. One industrial broker reported that manufacturing companies seeking space in the Charlotte region are currently outnumbering distribution-focused deals by a ratio of 2-to-1. This trend underscores a pivot in the regional commercial real estate landscape, where the focus is moving away from simple logistics and toward energy-intensive manufacturing and technology hubs that require long-term utility commitments.