You have an automation strategy. But do you have an automation power strategy?

Warehouses and manufacturing plants are increasingly embracing automation as a smart business investment. The market for warehouse automation alone is forecast to more than double from $30 billion in 2025 to $66 billion by 2031. The drivers for automation in factories and warehouses are clear—automation tackles a shortage of human workers, reduces labor costs, and improves efficiency and productivity.

The business case for automation is compelling enough to attract real dollars. But what rarely merits attention in automation case studies and market forecasts is the electricity required to power it. Power demand can increase substantially after automated sorting systems are installed, not only due to the installation of automation equipment, but also the fact that automation can run around the clock.

Four questions every facility considering automation must answer.

The energy implications of a shift to automation are significant. But energy is not a topic that many of the companies contemplating automation have prioritized. “Production targets, throughput, and labor efficiency have historically driven decision-making,” according to a report by the Association for Advancing Automation. “Energy, by comparison, has remained in the background, showing up mainly as a monthly line item.”

Companies that need abundant and affordable electricity on a timeline that matches their automation roadmap will benefit by developing a robust energy strategy. An effective strategy to power an automated facility should answer these four questions: 

1. "Can your utility serve your increased power demand?" 

The instinctive response to secure more power is to call your utility. Today, however, the surge in power needed by data centers and other large power users frequently requires system upgrades that take years to complete. Those grid upgrades also often necessitate upfront payments. If the timing of utility power doesn’t match your automation roadmap, onsite generation is a viable option to meet your timeline. 

2. "Have you fully considered the risk of cost increases for electricity?"

According to the Energy Information Administration (EIA), average wholesale electricity prices rose 23% between 2024 and 2025 and were expected to climb another 8.5% in 2026. More specifically, the commercial rates many manufacturers and logistics companies pay are also rising fast, with states like Ohio seeing increases of nearly 20% over the past year. Not only can onsite generation provide the power needed for automation faster and cheaper in many locations, it also can deliver long-term cost certainty. 

3. "Do you have a reliability strategy?"

Automation increases a facility’s dependence on a continuous supply of power. Traditional warehouses have downtime when workers are not present on weekends, nights, and during shift changes. An outage during those off-hours has little impact on productivity and revenue. By contrast, an automated facility running 24/7 has no downtime, and every outage imposes a financial and productivity toll. Most facilities depend on diesel backup generators to ensure reliability. But they are expensive insurance policies against outages. Purchasing, testing, and maintaining them requires significant ongoing investment, regardless of whether they ever run. And when diesel generators are actually needed for backup power, they produce noise and emissions that can trigger community opposition and regulatory penalties. Dispatchable, low-emission onsite generation does what diesel generators cannot: provide prime power to keep automated facilities continuously running while also delivering backup power when the grid fails.

4. "Is your automation strategy built for the long-term?"

Onsite generation provides access to power on a timeline that matches your automation strategy, but only if it can be permitted quickly. That requires technology with low emissions and a safety profile that satisfies local regulators, even in areas with strict air quality standards. While speed to power matters, it’s not the only consideration. The facilities that benefit most from onsite power are the ones that use it effectively after the grid arrives or when power needs change. Generation equipment that can’t adapt becomes an expensive stranded asset. But dispatchable onsite generation becomes a valuable long-term resource, able to mitigate demand charges, provide backup power, and hedge against rising utility rates. 

The investments pouring into automation make one thing clear: automated facilities are the future of manufacturing and logistics. What’s also clear is that the timeline and expense to secure the benefits of automation depend on energy. Those who take a passive approach to energy will wait longer and pay more to transform their operations with automation. But those that treat energy as a strategic priority from the start will be the first to realize an automated future.