What is Indoor Farming? -- A Quick Overview for Newcomers

What exactly is indoor farming, and how does it work?

Indoor farming is a method of growing crops in controlled, indoor environments using advanced technology and efficient space design. It's one of the most important innovations in agriculture today. Indoor farming lets people grow food inside buildings, shipping containers, or warehouses instead of using traditional farmland. This approach helps ensure a fresh, local food supply no matter the season or location.

One of the most common types of indoor farming is called vertical farming. In vertical farming, crops grow in stacked layers—kind of like shelves—so farmers can grow a lot of food in a small area. This is especially helpful in cities or places where farmland is limited.

One of the main components used in vertical farming is hydroponics. Instead of using soil, hydroponic systems feed plants with water mixed with nutrients. As a result, plants often grow faster and use up to 90% less water than traditional farming. It's clean, efficient, and perfect for growing leafy greens, herbs, and other high-yield crops indoors.

Benefits of indoor farming include:

1. Faster plant growth using year-round lighting and temperature control.
2. Reduced food waste by harvesting only what's needed.
3. Less transportation, since food is grown closer to where people live.
4. Fewer pesticides and chemicals, leading to cleaner produce.
5. More consistent crop quality and fewer surprises from weather or pests.

From hospitals and hotels to tech firms and schools, organizations across a wide range of industries are now investing in vertical farming—not just as a sustainability measure, but as a smart, forward-thinking strategy.

Now let's take a closer look at six industries that are leading the way!

1. Healthcare -- Hospitals and Long-Term Care Homes

Why are hospitals and long-term care homes growing food on-site?

Healthcare facilities like hospitals and long-term care homes are investing in indoor farming to grow food on-site. These indoor farms help improve nutrition, reduce food waste, and support wellness for both patients and staff. As a result, this trend is becoming a smart way to make healthcare more sustainable and self-sufficient.

In places where fresh produce is hard to access, growing food indoors gives hospitals full control over the food they serve. Indoor farms use clean, controlled environments, so there's no need to worry about pesticides, long-distance shipping, or bad weather ruining crops. More importantly, the food is grown just steps away from the kitchen, which means meals can be fresher, healthier, and better tailored to each patient's needs.

Key benefits of indoor farming in healthcare settings:

1. Better nutrition for patients through fresh, nutrient-dense meals.
2. Support for therapy and wellness, especially in senior care.
3. Reduced food waste by growing only what's needed, when it's needed.
4. Improved food safety with fewer outside contaminants.
5. Lower environmental impact by cutting down on food transport.

A Case Study: Farms in Long-Term Care

In partnership with the University of Northern British Columbia and The Centre for Technology Adoption for Aging in the North (CTAAN), Just Vertical's green walls are delivering fresh, leafy greens year-round. The systems support patient health with nutrient-dense meals while also serving as a therapeutic and educational tool. Staff, students, and residents alike engage with the growing process, helping foster a stronger connection to food. This model shows how vertical farming can enhance healthcare environments by combining sustainability, wellness, and community involvement all in one space.

2. Education -- Schools, Colleges, and Universities

How is investment in indoor farms transforming the classroom?

Indoor farms are transforming the classroom by making learning more hands-on, exciting, and connected to the real world. Today, more schools, colleges, and universities are investing in indoor farming to give students a new way to explore science, technology, and sustainability. These systems, often powered by hydroponics or vertical farming setups, turn ordinary classrooms into living labs.

For example, students can grow leafy greens or herbs right in their school's cafeteria or science wing. As a result, they not only learn how plants grow but also understand where food comes from and why sustainable growing matters. In the same vein, indoor farming ties into STEM education by combining biology, chemistry, environmental science, and even data tracking.

Reasons schools are investing in indoor farming:

1. Supports STEM learning through interactive, real-world experiments.
2. Provides fresh produce for school meals and student nutrition.
3. Teaches sustainability and environmental responsibility.
4. Encourages teamwork and student engagement.
5. Builds career pathways in agriculture, tech, and food systems.

A Case Study: Educational Indoor Farming

At Seneca College, a container farm has become a key part of both student learning and applied research. Housed in a retrofitted shipping container, this system allows students to study how light and nutrient conditions impact the growth and nutritional value of different herbs. As a result, students gain hands-on experience with vertical farming while contributing to real-world agricultural innovation. This setup not only supports Seneca's sustainability goals but also helps prepare the next generation of food system leaders through experiential education and science-based discovery.

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3. Hospitality -- Hotels, Resorts, and Restaurants

Why are hotels and restaurants turning to hyper-local food?

Hotels, resorts, and restaurants are turning to hyper-local food sources by investing in indoor farming. Indoor farms—especially vertical farms—are being added directly into kitchens, lobbies, or rooftops to grow fresh herbs, greens, and garnishes on-site. This trend is helping the hospitality industry stand out while serving tastier and more sustainable meals.

For example, a luxury resort might install a hydroponic growing wall to grow basil or lettuce just steps from the chef's station. As a result, chefs can harvest right before serving, which means dishes are bursting with flavor and nutrients. Additionally, these indoor farms are a major draw for guests who are concerned about the origin of their food.

What makes indoor farming appealing for hospitality?

1. Peak freshness -- Guests enjoy food harvested minutes before mealtime.
2. Sustainability -- Great for eco-conscious branding and certifications.
3. Cost control -- Less spoilage, better inventory, and reduced food waste.
4. Unique experience -- Adds a "wow" factor and story to the dining journey.
5. Reliable supply -- Grow what you need, when you need it.

Moreover, indoor farming gives restaurants and hotels better control over food quality, cost, and waste. There's no need to ship produce long distances when you can grow it in-house. Consequently, this leads to fewer deliveries, lower emissions, and happier, healthier guests.

A Case Study: Sustainable Hospitality

Hotel Haarhuis in Arnhem, Netherlands, has embraced vertical farming by installing Vegger's FlaxFarm systems within its LOCALS restaurant. This innovative approach allows the hotel to cultivate fresh herbs and vegetables on-site, including basil, lettuce, coriander, oregano, endive, and beetroot sprouts. By growing produce in a controlled, soil-free environment, the hotel ensures peak freshness and sustainability in its culinary offerings. This initiative not only enhances the dining experience for guests but also aligns with eco-conscious practices, reducing the need for long-distance food transportation and minimizing environmental impact.

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4. Retail -- Grocery Chains & Big Box Stores

How are grocery chains and big box stores getting involved in indoor farming?

Grocery chains and big box stores are getting involved in indoor farming by growing food right inside or near their stores. With vertical farms and hydroponic systems, retailers can now offer fresher produce that is harvested just steps away from the shelves. As a result, customers get better quality food, and stores gain more control over their supply.

For instance, some stores use in-store grow towers to produce leafy greens and herbs. Others are installing container farms in their backlots or on rooftops. These indoor farming systems don't need soil, and they use much less water. That means they're not only efficient but also great for the environment.

Key outcomes of indoor farming in retail:

1. Fresh produce with a longer shelf life.
2. Fewer supply chain problems by growing food on-site.
3. Lower food waste through just-in-time harvesting.
4. Eco-friendly branding that attracts conscious shoppers.
5. Better pricing control by reducing transport and packaging costs.

Case Study: Whole Foods Market's In-Store Mini Farm

A Whole Foods Market in New York has embraced vertical farming by partnering with Farm.One to build a three-level deep water culture hydroponic system inside its Manhattan West store. Occupying just 36 square feet, this mini-farm cultivates up to 150 basil plants, supplying the store's kitchen with a constant stream of fresh, pesticide-free herbs. The farm's sleek design, featuring stainless steel and tempered glass, complements the store's aesthetic while showcasing the brand's commitment to sustainability and innovation.

5. Commercial Real Estate & Developers

How are developers using indoor farms as value-adding features?

Commercial real estate and developers are using indoor farms to add long-term value to their properties. By turning common areas, rooftops, or even underused basements into food-producing green spaces, they're offering something that's both unique and future-focused. Indoor farms not only look great, but they also support sustainability goals that are becoming more important to tenants and buyers alike.

For example, a condo or office building might feature a hydroponic wall in the lobby or a vertical farm on the rooftop. As a result, these farms become not only a talking point but also a real benefit for tenants who want access to fresh, healthy food grown on-site. In addition, these spaces can help projects earn LEED credits and other green building certifications.

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What do indoor farms offer builders and developers?

1. Increased property value with a modern, sustainable feature.
2. LEED certification points for energy, water, and food system improvements.
3. Stronger tenant appeal thanks to green amenities and fresh food access.
4. Improved retention rates by providing benefits that residents or businesses can use.
5. Sustainable branding opportunities for new developments and marketing.

Case Study: Pasona Urban Farm -- Tokyo, Japan

As one of the first examples of a vertical farm in an office setting, Pasona Group's Tokyo headquarters integrates agriculture directly into its workspace. This nine-story building features over 43,000 square feet of green space, cultivating more than 200 species of fruits, vegetables, and rice throughout meeting rooms, corridors, and even the main lobby. Utilizing hydroponic and soil-based systems, the produce is harvested by employees and served in the on-site cafeterias, embodying a true farm-to-table model.

6. Technology -- Automation, AI, and IoT Companies

Why are tech companies investing in smart agriculture?

Technology companies focused on automation, AI, and IoT are investing in smart agriculture to create more efficient and scalable indoor farming systems. Indoor farms are controlled environments that offer the perfect playground for new technology. As a result, tech firms can test sensors, artificial intelligence, and cloud-based systems while supporting global food production.

For example, many modern farms use AI tools to analyze crop data and predict growth patterns. Meanwhile, IoT devices track temperature, humidity, and nutrient levels in real-time. Some companies even use cloud-based dashboards to let farm managers control everything from a phone or tablet. Therefore, the connection between tech and agriculture is only getting stronger.

Why is investing in indoor farming a natural fit for the tech industry?

1. Data-rich environments are perfect for AI and analytics tools.
2. Real-time monitoring needs smart sensors and IoT systems.
3. Supports ESG goals with clean and efficient operations.
4. Cloud integration for remote control and performance tracking.
5. Opportunities to scale automation is needed across multiple farms and regions.

This innovative hydroponic system lets you use less land with greater yield. 🌿

Via: @IronOxFarms pic.twitter.com/wfxcPATZgX

— Interesting Engineering (@IntEngineering) September 28, 2019

Case Study: Siemens & Intelligent Growth Solutions (IGS)

Siemens is enhancing vertical farming through its AI-driven systems, optimizing plant growth by controlling environmental factors like light and temperature. In collaboration with 80 Acres Farms, Siemens supports the industrialization and scaling of the company's proprietary Loop platform—a comprehensive solution encompassing crop management software, environmental controls, robotics, and automation.

Similarly, IGS integrates robotics and AI in its vertical farming infrastructure, offering scalable, resource-efficient solutions that ensure consistent crop production. Their modular Growth Towers and Total Controlled Environment Agriculture (TCEA) systems enable year-round cultivation of various crops, optimizing resource use and minimizing environmental impact.

Both companies exemplify how automation, AI, and IoT are revolutionizing indoor farming, making it more efficient, scalable, and sustainable.

7. FAQs About Investing in Indoor Farming

Q1: How much does it cost to start an indoor farm?
Depending on size, location, and tech, systems can range from $100K to millions. But smart planning often leads to fast ROI.

Q2: Can I invest without building a farm myself?
Yes. You can partner with providers like Just Vertical to handle the build and maintenance while you support the project.

Q3: What types of crops are best for vertical farms?
Leafy greens, herbs, microgreens, strawberries, and other high-turnover crops offer strong returns.

Q4: How long until I see returns on my investment?
Returns typically begin within 2–5 years, depending on scale and efficiency.

Q5: Is this a scalable solution?
Absolutely. Container farms, grow racks, and modular systems mean indoor farms grow with your needs.

8. Conclusion

What's the final takeaway for investing in vertical farming?

Investing in vertical farming is more than a trend—it's a step toward building a smarter, more resilient food system. As industries continue to search for cleaner, more efficient ways to grow and deliver food, indoor farming is becoming a key part of the solution. From healthcare to high-tech, organizations are using vertical farms to meet sustainability goals, boost local supply chains, and create new value in unexpected places.

Scientists reveal futuristic farming technique that may solve two global problems at once: ' Can revolutionize food production' <https://t.co/17Qkd2ZXkx

— Controlled Environment Agriculture News (@CEAgrinews) May 30, 2025

Most importantly, vertical farming allows food to be grown where it's needed most—whether that's inside a school, behind a grocery store, or on the rooftop of a downtown apartment. With climate change, rising costs, and supply chain issues, businesses are seeing indoor farming as a way to take control of their food systems.

Investing in vertical farming means investing in a better future. Whether you want to reduce costs, improve food access, or lead in innovation, now is the time to plant the seeds.