Electric commercial trucks are gaining momentum, bringing a new set of challenges for operators. These fleets must now figure out how to build the necessary charging infrastructure, a task complicated by existing grid constraints. Electric trucks are among many new energy users competing for space on an increasingly crowded electrical grid.
Although the current number of electric trucks in operation is small, with only a few thousand units on the road, adoption is growing. According to McKinsey, over half of all fleets are now piloting the technology.
One startup, EV Realty, aims to address this infrastructure challenge. The company finds available space on the electrical grid and develops those properties into charging hubs designed to serve multiple fleets. It currently operates five such hubs in California, all strategically located near warehouses, ports, and other industrial properties.
EV Realty recently raised $75 million to fund the construction of additional charging hubs throughout California. The funding round was led by the private equity investor NGP, with contributions from the company’s own management team. This capital will support new projects, including a 76-stall fast-charging site in San Bernardino. This hub will feature four “pull-through” stalls equipped with Megawatt Charging System plugs, allowing a semi-truck to charge without disconnecting its trailer. Once operational, the site is expected to charge more than 200 Class 8 trucks daily.
The company models its business after Digital Realty, the real estate investment trust that builds and operates data centers. EV Realty’s co-founder and CEO, Patrick Sullivan, described it as a new infrastructure class for real estate and stated his company is following the same concept.
To identify optimal locations, EV Realty uses in-house software that maps the electrical grid, vehicle density, traffic patterns, real estate use, and potential customers. This search for available grid capacity is similar to the process for siting data centers, though Sullivan notes a key difference. Charging hubs have a much smaller footprint in both acreage and megawatt requirements, giving the company more flexibility. Data centers often require hundreds of megawatts, while EV Realty’s hubs need only tens of megawatts.
Despite some fleet operators remaining hesitant to adopt electric trucks, Sullivan reports strong interest from those who have already made the switch. He sees significant demand in the near future, noting that current customers see the opportunity and want to expand their electric operations.