Power outages drive supply chain worries: report

AI generated summary

A recent report from Prologis reveals that 89% of global executives experienced energy-related disruptions in the past year, with 83% predicting that power reliability will be a key factor in the next major supply chain crisis. The report highlights the increasing power demands driven by AI, with executives anticipating a 10-50% rise in energy requirements at their facilities over the next five years. Prologis CEO Hamid Moghadam emphasized the need for resilience in supply chains, focusing on energy reliability, AI, and location as critical factors.

The survey also identified economic volatility, tariff increases, geopolitical instability, and cybersecurity threats as significant concerns for potential operational disruptions by 2026. With only 27% of organizations possessing advanced power resilience capabilities, the report indicates a disconnect between current capabilities and future demands, posing a threat to operational continuity. Furthermore, 77% of executives are shifting towards building regional, self-sufficient networks, prioritizing energy reliability over traditional factors like labor costs, underscoring the growing importance of energy security in global supply chains.