EV Realty: Real Estate for Electric Trucking

The Rise of Electric Commercial Trucks and Charging Infrastructure Challenges

Electric commercial trucks are gaining momentum in the transportation sector. This expansion, however, introduces new difficulties for operators as they plan and implement the necessary charging infrastructure for their expanding EV fleets.

Grid Constraints and Increasing Demand

Existing limitations within the electrical grid present a significant hurdle. Securing adequate power capacity isn't always feasible, as EV trucks compete with other energy consumers for space on an increasingly strained grid.

Currently, the demand remains relatively modest, with only a few thousand units in operation. However, a substantial portion of fleets – over half, according to McKinsey – are actively piloting this technology.

EV Realty: Addressing the Infrastructure Gap

A startup named EV Realty is working to alleviate these challenges. Their strategy centers on identifying underutilized capacity on the grid and transforming suitable properties into dedicated charging hubs for multiple fleets.

Currently, the company manages five charging hubs located in California, strategically positioned near warehouses, ports, and other key industrial areas.

Recent Funding and Expansion Plans

EV Realty recently secured $75 million in funding to facilitate the construction of additional charging hubs throughout California. This investment round was led by private equity firm NGP, with contributions from EV Realty’s management team.

The capital will be used to develop new hubs, including a substantial 76-stall fast-charging facility in San Bernardino, California.

Advanced Charging Capabilities

This new site will feature four “pull through” stalls equipped with Megawatt Charging System (MCS) plugs. This allows semitrucks to recharge without the need to disconnect their trailers.

Once operational, the hub is projected to support the charging of over 200 Class 8 trucks on a daily basis.

A Data Center Approach to EV Charging

EV Realty’s business model is inspired by Digital Realty, a real estate investment trust specializing in the development and operation of data centers.

“It was a new sort of infrastructure class for real estate,” explains Patrick Sullivan, co-founder and CEO of EV Realty. He further emphasizes that EV Realty operates on a “very much the same concept.”

Data-Driven Site Selection

The company utilizes proprietary software to identify optimal locations. This software analyzes the electrical grid, vehicle density, traffic patterns, land usage, and potential customer base.

Advantages of a Scalable Model

Like data centers, EV Realty seeks available grid capacity. However, the smaller physical footprint and lower megawatt requirements of charging hubs provide greater flexibility in site selection.

“They’re looking for hundreds and hundreds of megawatts, and we’re looking for tens of megawatts,” Sullivan notes.

Positive Market Outlook

Despite some fleet hesitancy regarding electric truck adoption, Sullivan anticipates strong demand in the near term.

“We see, frankly, more interest right now from the customers that have made the switch. They recognize the benefits and are eager to expand their electric fleet operations.”