Hydroponics and Vertical Farming: The Technical Guide to Understand, Grow, and Innovate

27. Real costs of vertical farming: CAPEX and OPEX

Written by Tomato+ Team | Dec 9, 2025 4:05:07 PM

 

Vertical farming is often perceived as a futuristic, efficient and potentially revolutionary technology. All true-but only if one fully understands the real costs involved in building and operating a system.

In this article we take a detailed look at CAPEX (initial costs) and OPEX (recurring operating costs) of a vertical farming system, distinguishing between indispensable elements, invisible costs, and opportunities to reduce expenses through automation and advanced technologies.

1. CAPEX: Initial investments to budget for.

The start-up costs of a vertical farming system can vary by +300% depending on design choices. The most relevant elements are:

1.1 Structure and space

  • Room set-up (insulation, flooring, washable coverings) o Isothermal cells or transportable structures for modular plants and rapid deployment

  • Certified electrical and plumbing systems

  • Any construction work

Typical incidence: 15-30% of total CAPEX.

1.2 Vertical racks and growing systems.

  • Multilevel racks

  • Tanks, NFT channels, DWC modules or other systems

  • Main and secondary tanks.

Incidence: 15-25%.

1.3 LED lighting.

LED installations represent one of the highest costs.
Tomato+ professional, variable-spectrum, liquid-cooled LEDs improve efficiency and reduce airflow complexity, providing uniformity on every plane.

Incidence: 20-30%.

 

1.4 HVAC and microclimate management.

  • Dehumidifiers

  • Ventilation and recirculation

  • Cooling and heating

This is often the most underestimated item, but it can amount to as much as 40 percent of CAPEX, especially in medium to large facilities.

1.5 Automation, sensors, rooms, and software

This is where the most innovative part of modern indoor agriculture comes in:

  • Environmental sensors

  • Controllers, pumps, valves

  • AI-enabled vision systems (such as the cameras on Horto Professional)

  • Cloud platforms, telemetry and IoT infrastructure.

Incidence: 10-20%.

1.6 R&D, consulting, certification.

Mainly for professional installations:

  • HACCP certifications

  • Setup of cultivation protocols

  • Development of the first customized Growth Plans.

Incidence: 5-10%.

2. OPEX: The recurring operating costs that determine the sustainability of the system.

These are the costs that distinguish a sustainable system from one that cannot be replicated over time.

2.1 Energy

The sum of:

  • lighting

  • HVAC (the heaviest item)

  • pumps, sensors, controllers

In many traditional systems, HVAC accounts for up to 50% of total consumption.
With more efficient and less hot LEDs (such as those with Tomato+ liquid cooling), the energy required for thermal control is significantly reduced, even more than 50%,

2.2 Consumables

  • Substrates or pods

  • Nutrient solution

  • Filters, membranes, sanitizing products

Automated systems and compostable materials (such as Tomato+ pods) reduce logistical waste and storage costs.

2.3 Labor.

It is the real differentiator of new plants:

  • daily monitoring

  • planting, transplanting, harvesting

  • technical maintenance

With an AI-first system such as Tomato+, part of the tasks are automated, reducing the need for operating personnel by 30 to 60 percent.
In addition, the use of ready-made substrates/seeds, which require no transplanting or intermediate handling but only placement and harvesting, eliminates one of the most time-consuming activities.

By combining automation and ready-to-use materials, in-house work is reduced to a few hours per month, varying by crop type.

2.4 Routine and extraordinary maintenance

  • LED replacement

  • sensor calibration

  • HVAC controls

  • hardware repairs

Hardware build quality and cloud telemetry (remote diagnostics) reduce these items.

2.5 Distribution costs.

A vertical farm that produces for sale must consider:

  • packaging

  • transportation

  • last-mile logistics

Decentralized or on-site models (as in plug-and-grow solutions) eliminate this item almost entirely.

3. Where invisible costs lurk

Vertical farming is not expensive because it is "futuristic"-it is expensive when three critical elements are underestimated:

3.1 Underestimation of heat load.

Every LED produces heat.
If not managed, HVAC explodes in cost.
Liquid-cooled systems reduce the heat load by transferring heat to the outside in a controlled manner.

3.2 Lack of automation

A manual system has OPEX too high to be scalable.

3.3 Lack of a data model.

Without an AI system that optimizes cycles and consumption, operating costs remain high and unpredictable.

4. How to really reduce CAPEX and OPEX

4.1 Standardize rather than customize

Any customization brings exponential costs.

4.2 Reduce HVAC with efficient LEDs

Liquid-cooled, spectrum-controlled LEDs maintain more stable and uniform conditions on all floors.

4.3 Drive automation

  • continuous telemetry

  • dynamic Growth Plan adjustment via AI

  • remote diagnostics

Dramatically reduces labor and losses.

4.4 Decentralized models

Producing at the point of consumption:

  • eliminates logistical OPEX

  • reduces waste

  • guarantees freshness 365 days

Exactly the Tomato+ model.

5. What is the true cost of a vertical farm system?

The correct answer is: it depends on the efficiency of the system, not the size of the facility.

A 50-square-meter plant with:

  • inefficient LEDs

  • oversized HVAC

  • no automation

  • manual labor

can cost more than a 200-square-meter installation with smart, optimized systems.

Conclusion

Vertical farming does not become sustainable by reducing costs-it becomes sustainable by increasing efficiency, automation, and operational predictability.
AI-first systems like Tomato+ demonstrate that when data becomes the heart of farming, OPEX is reduced and scalability becomes real.

Thank you for reading this article. Keep following us to discover new content on hydroponics, vertical farming, and smart agriculture.
Tomato+ Team