iFarm cuts CAPEX for leafy greens vertical farms by 28%

Starting a vertical farm incurs significant CAPEX, which directly impacts the payback period. iFarm is dedicated to systematically reducing CAPEX to benefit its customers.

iFarm has made significant strides in reducing the capital expenditure (СAPEX) for the construction of vertical farms with iFarm Leafy Greens technology. iFarm has achieved a decline of 28% in CAPEX for urban farmers across the MENA and Asia-Pacific regions.


Starting a vertical farm incurs significant CAPEX, which directly impacts the payback period. iFarm is dedicated to systematically reducing CAPEX to benefit its customers.

CAPEX includes the cost of equipment, such as lighting, climate control, and electrics, alongside automation, design, and setup. The purchase of equipment and components constitutes roughly 75% of the total investment. iFarm's reduction in CAPEX for urban farmers will significantly alleviate the cost burden associated with setting up a vertical farm.

In 2024, the capital investment required to construct a leafy greens vertical farm with iFarm technology experienced an average 28% decrease, amounting to $800 per square meter of growing area.

As part of CAPEX reduction, agreements were made with machinery and equipment manufacturers in Indonesia, Saudi Arabia, and the UAE. It resulted in a 50% reduction in transportation volumes and shipping costs. The team also sourced high-quality and lower-cost components for vertical farming technologies from China, including trays, racks, and other equipment.

The following table outlines the capital investment needed to construct a leafy greens vertical farm with iFarm technologies. This calculation was made for a farm with a 1,000 m² growing area in one of the MENA countries.

iFarm Leafy Greens technology makes it possible to grow fresh salads and herbs year-round, regardless of climate. The technology uses the enhanced Deep Flow Technique (DFT). According to our latest research, this growing method is optimal for the healthy unit economics of a leafy greens vertical farm.

About iFarm
iFarm is a technology development company for IT-driven plant growth in a controlled environment. Working with indoor farm projects ranging from 500 to 20,000 m2, the company provides ready-to-use vertical farming systems to grow leafy greens, strawberries and veggies, with full support before and after setting up a farm. The key feature is an intelligent farm management software iFarm Growtune which optimizes yields and increases farm productivity.

Founded in 2017, with new headquarters in Abu-Dhabi (UAE), iFarm has operational and in-construction farms in Europe, the Middle East, and Asia with a total growing area over 13,000 m2, with a focus on developing in the MENA region. In 2022, the company participated in the Hub71 program in Abu-Dhabi (UAE).

iFarm was awarded a "Solar Impulse Efficient Solution" Label, which is a proof of high standards in profitability and sustainability; "Best Social Impact Startup" honors at the Nordic Startup Awards "Innovate For Good"; Vertical Farming World Awards in the "Best AI/Automation Development" category; Global Startup Awards; Europe's Hottest AgFood Tech startup by The Europasl; TOP-20 team honors at Impact Collective 2020 for Sustainable Agriculture and Food; and other recognitions.
For media inquiries: pr@theifarm.com
Website: https://ifarm.fi/

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