How Much Does It Cost to Convert a 1,000 sqm Industrial Warehouse into a Cold Storage Facility?

Converting an existing industrial warehouse into a cold storage facility is a cost-effective solution for food processors, agricultural distributors, and cold chain operators. Compared with new construction, warehouse retrofitting significantly reduces civil work while maintaining operational flexibility.

Basic Project Assumptions

This cost estimate is based on a standard industrial warehouse retrofit scenario:

• Available floor area: 1,000 m²
• Clear internal height: 5 meters
• Total usable cold storage volume: approx. 5,000 m³
• Application: fresh produce cold storage or food cold storage
• Design temperature: 0°C to +5°C

The warehouse structure is assumed to be compliant with industrial load requirements and suitable for panel installation and refrigeration equipment mounting.

Estimated Construction Cost

For a standard fruit and food cold storage retrofit:

• Average construction cost:
  USD 145 – 180 per m²
• Estimated total investment:
  USD 145,000 – 180,000

Lower temperature requirements increase cost. As a general rule, each temperature drop below 0°C raises both insulation thickness and refrigeration capacity, directly impacting total investment.

Special Cold Storage Types

For special-purpose facilities, costs rise significantly:

• Explosion-proof cold storage (Class C buildings):
  USD 200 – 300+ per m²
• Blast freezing, CA storage, ultra-low temperature cold rooms:
  Higher insulation grade, safety systems, and control redundancy required

Storage Capacity Explained

A commonly used industry reference:

1 ton of fresh produce ≈ 4–5 m³ of cold storage volume

Based on a 5,000 m³ facility:

• Estimated storage capacity:
  1,000 – 1,250 tons of fresh produce

This capacity supports:

• Regional fruit and vegetable distribution
• Food processing buffer storage
• Seasonal agricultural inventory management

Energy Consumption & Operating Cost

With proper insulation and right-sized equipment:

• Installed power: approx. 45–55 kW
• Average daily electricity consumption:
  900 – 1,200 kWh
• Estimated annual electricity cost:
  USD 38,000 – 45,000

Using higher-grade panels and efficient compressors reduces long-term operating cost and improves temperature stability.

Investment & ROI Summary

From an investor and operator perspective, a 1,000 sqm warehouse-to-cold-storage retrofit offers a strong balance between capital input and operational return.

Total Investment

• USD 145,000 – 180,000

Effective Storage Capacity

• 1,000 – 1,250 tons

Annual Operating Cost (Electricity)

• USD 38,000 – 45,000

Revenue Potential

• Average cold storage service fee:
  USD 6 – 10 per ton / month
• Estimated annual storage revenue:
  USD 75,000 – 120,000

Estimated Payback Period

• 4 – 6 years, depending on utilization rate and seasonal demand