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Energy Challenges in Food Processing Expansions
Energy Challenges
The Power Problem No One Planned For…for decades, food processors could count on the energy grid.
Not anymore.
Today, AI-driven demand is creating systemic energy risk.
AI data centers are booming—but, to get industry specific, they’re squeezing out food and beverage expansions.
Recently, AlphaStruxure and Schneider Electric partnered with Food Processing magazine to survey 145 senior industry professionals. This is the first major survey undertaken to measure how the Food &Beverage and Consumer Products & Goods industries are managing energy challenges in the AI era.
The Result?
AI data centers are consuming energy grid capacity at a pace we’ve never seen. The result?
- 57% of food processors face issues getting enough grid power for facility expansions.
- 70% face waits of three years or more for upgrades.
- Nearly half have seen electricity costs jump 26% in five years.
- 91% of food processors are paying more than the U.S. industrial average rate for electricity.
- 77% – Cost of additional utility capacity too expensive.
- 52% – Utility lacks sufficient capacity.
- 48% – Long lead time for more capacity.
We’ve seen projects break ground only to stall because the energy grid couldn’t deliver. Incentive windows close. Costs climb. Timelines blow up.
It’s Not Just About Geography – It’s About Energy
This is why site selection isn’t just about geography—it’s about energy resilience. When we advise clients, we factor in power availability-current needs and future demands, negotiate incentives that offset rising costs, and build strategies for on-site generation. Because the best growth plan in the world won’t matter if you can’t turn the lights on.
Don’t let power constraints or missed incentives stall your growth.
Ready to make your next location your smartest investment?
Connect with us today to build a site selection strategy that delivers resilience, savings, and long-term success.
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