EV Realty, a company specializing in charging infrastructure for commercial electric vehicles, has successfully raised $75 million in a new funding round. The investment will fuel the expansion of its charging hub network across California, addressing the growing demand from commercial fleets transitioning to electric trucks.
The funding, led by private equity firm NGP, will support the development of strategically located charging depots, including a large-scale project in San Bernardino designed to service hundreds of heavy-duty trucks daily.
Key Takeaways
- EV Realty has raised $75 million in a funding round led by private equity investor NGP.
- The capital is designated for building new charging hubs for commercial electric trucks throughout California.
- A planned 76-stall facility in San Bernardino will feature advanced Megawatt Charging System (MCS) technology.
- The company's business model focuses on identifying real estate with available electrical grid capacity to serve multiple fleet operators.
Addressing a Critical Infrastructure Gap
The adoption of electric commercial trucks is accelerating, but progress is often hindered by a significant challenge: the lack of adequate charging infrastructure. Fleet operators attempting to build their own charging facilities frequently encounter limitations with the existing electrical grid, which is already under strain.
Electric trucks represent a substantial new demand on power systems. According to research from McKinsey, over half of all commercial fleets are already piloting electric vehicle technology, signaling a substantial increase in future energy needs. This creates a competitive environment where various industries are vying for limited grid capacity.
The Grid Capacity Challenge
Building private charging depots for large electric truck fleets requires immense power, often more than the local grid can supply without costly and time-consuming upgrades. This bottleneck is a major barrier to widespread EV adoption in the commercial sector, creating an opportunity for specialized infrastructure providers.
A Real Estate Approach to EV Charging
EV Realty is tackling this problem by developing shared charging hubs that can serve multiple fleets from a single location. The company's strategy is modeled after Digital Realty, a real estate investment trust known for building and operating data centers. The core concept involves identifying properties with sufficient, untapped grid access and developing them into specialized infrastructure assets.
"It was a new sort of infrastructure class for real estate," Patrick Sullivan, co-founder and CEO of EV Realty, explained. He noted that EV Realty is "very much the same concept," applying a real estate development model to the energy sector.
To find optimal locations, EV Realty utilizes proprietary software that analyzes multiple data layers. This technology maps the electrical grid, vehicle density, traffic patterns, and local real estate use to pinpoint sites with the best potential for a high-traffic charging hub.
This approach allows the company to secure locations before grid capacity becomes scarce. While data centers often require hundreds of megawatts of power, EV Realty targets sites with tens of megawatts, giving it more flexibility in site selection.
Expansion Plans Fueled by New Capital
The new $75 million investment will directly fund the construction of new charging depots across California. A key project is a planned 76-stall fast-charging site in San Bernardino, a critical logistics hub in Southern California.
This facility is designed specifically for the needs of heavy-duty commercial trucks. It will include four "pull-through" stalls equipped with Megawatt Charging System (MCS) plugs. This advanced technology allows a semi-truck to charge quickly without the driver needing to unhook the trailer, significantly improving efficiency and turnaround time.
San Bernardino Hub Capacity
Once operational, the San Bernardino charging hub is projected to have the capacity to charge more than 200 Class 8 trucks per day, making it one of the largest facilities of its kind and a vital piece of infrastructure for the region's supply chain.
Targeting High-Demand Corridors
EV Realty already operates five charging hubs in California, all situated near key industrial zones such as warehouses and ports. This strategy places charging infrastructure exactly where fleets need it most, minimizing downtime and supporting daily operations.
The company reports strong interest from customers who have already begun electrifying their fleets. According to Sullivan, these early adopters recognize the operational benefits and are eager to expand their electric operations, further driving demand for reliable, accessible charging solutions.
"We see, frankly, more interest right now from the customers that have made the switch," Sullivan said. "They see the opportunity and want to do more." This feedback indicates a ready market for the infrastructure EV Realty is building, suggesting that the primary barrier for many fleets is not the vehicles themselves, but the availability of charging.
