Industries Served
Switchgear and Power Distribution Financing for Warehouse and Logistics
Distribution centers that were built a decade ago were not designed for the electrical loads that automation, robotics, and EV forklift charging are adding today. The service entrance switchgear that worked fine for a manually operated pick-and-pack operation may not support the added amperage of an automated sortation system, a charging infrastructure buildout, or a new refrigerated addition. Financing the service entrance upgrade and the downstream distribution lets operators expand electrical capacity on the operational timeline, not the capital budget timeline.
We finance electrical infrastructure for industrial warehouse, distribution center, and logistics facility owners and operators. Equipment financed includes upgraded service entrance switchboards, main distribution switchgear, tenant and zone panelboards, motor control centers for conveyor and sortation systems, and transfer switches for backup generator connections. Minimum transaction $50,000; most warehouse electrical packages run from $100,000 to several million for large fulfillment center upgrades.
Electrical Demand Growth In Modern Warehousing
The shift toward warehouse automation has changed the electrical profile of distribution facilities significantly. A manually operated warehouse might run at 3 to 5 watts per square foot of electrical demand. A highly automated facility with robotic picking, high-speed sorters, and dense EV charging infrastructure can run 15 to 25 watts per square foot or more. A million-square-foot fulfillment center operating at that density requires a service entrance that would have been appropriate for a mid-sized manufacturing plant a generation ago.
EV fleet charging adds a predictable but large block load. A 200-unit electric forklift fleet charging overnight can draw 500 to 1,000 kW at peak. The switchgear and distribution equipment to support that load often requires a service entrance upgrade or a new electrical room. Those projects are exactly what this program funds. The EV charging infrastructure page covers that application in more detail.
Third-party logistics operators managing cold chain facilities have the highest electrical demand of all. Their refrigeration loads combine with automation loads to create service entrance requirements that few existing buildings were designed to meet. Facilities in active logistics corridors near Memphis, TN, Chicago, IL, and Dallas, TX regularly encounter these upgrade situations.
What We Finance For Warehouse And Logistics Facilities
Service entrance upgrades are the most common project in this category. A warehouse built in the early 2000s with a 2,000-amp, 480V service entrance may need to be expanded to 4,000 amps or 6,000 amps to support current tenant electrical requirements. That upgrade involves new service entrance switchgear or a parallel main-tie-main configuration, and the equipment is substantial in both cost and lead time.
Conveyor and sortation system MCCs are another major category. High-throughput logistics facilities run dozens of conveyor sections, each with its own motor starter or VFD. The MCC serving a large automated conveyor system can have 40 to 80 buckets and represent $300,000 or more in capital equipment.
Busway and bus duct distribution systems are common in large distribution centers where power must be distributed horizontally across wide floor plates without individual home-run conduit runs. Busway systems are expensive per linear foot but efficient to install and easily reconfigured as the floor layout changes. We finance busway systems as part of the distribution infrastructure package.
Financing Options For Warehouse Owners And Operators
Property owners and tenant operators approach this differently. Property owners installing permanent electrical infrastructure to attract tenants or meet current tenant requirements are best served by an equipment loan that follows the asset. Tenant operators installing electrical improvements under a long-term lease can also finance, provided the lease term supports the loan term and the equipment ownership at end of tenancy is documented.
For multi-facility logistics operators expanding a network of distribution centers, a master credit facility that covers electrical upgrades across multiple properties under a single credit relationship reduces the overhead of individual applications per site. Equipment leasing is available for operators who prefer operating lease treatment for accounting purposes. Direct equipment loans provide clean ownership for operators who expect to hold the facility long term.
Price This Switchgear Financing Package
Send the quote, seller, lead time, deposit requirement, project location, and the electrical package scope. We will review the structure around the purchase schedule.
Review Switchgear TermsCommon Questions on Switchgear and Power Distribution Financing for Warehouse and Logistics
Straight answers before you send the equipment file.
Can we finance a service entrance upgrade while the warehouse is operating?
Yes. The loan is tied to the purchase order, not the construction sequence. Installation sequencing is between you and your electrical contractor.
Can a tenant under a long-term lease finance electrical improvements?
Yes. Lease term must cover the financing term, and lease language addressing equipment ownership at end of tenancy is reviewed as part of documentation.
Can a speculative industrial developer finance the electrical overage on a high-spec warehouse?
Yes. Developers financing enhanced electrical infrastructure above minimum base build specifications qualify under this program.
Can busway and switchgear be financed together under one loan?
Yes. Mixed electrical distribution packages on the same project are covered under a single facility with itemized purchase order schedules.
Can we do a sale-leaseback on facility electrical equipment before a property sale?
Yes. The equipment encumbrance from the sale-leaseback needs to be disclosed to the property buyer. Timing and structure should be coordinated with your transaction team.
Review The Switchgear and Power Distribution Financing for Warehouse and Logistics Package
Send the equipment quote, seller, lead time, deposit schedule, and project location. The finance desk will review the package against the actual procurement calendar.