Setting Up a Small-Scale Cold Storage Facility: Costs and Potential Returns Small-scale cold storage facilities are becoming crucial in 2025, serving industries from fresh foods to pharmaceuticals. These specialized warehouses help preserve products that require precise temperature controls. If you're considering investing in one, understanding the upfront costs and possible earnings is key to making smart business choices. Initial Investment and Construction Costs Building a cold storage facility isn’t the same as constructing a regular warehouse. Costs usually range from $130 to $350 per square foot , influenced by the type of insulation, refrigeration equipment, and safety features needed. Traditional warehouses don't demand the airtight insulation and complex cooling systems that cold storage units require. Key cost drivers include: Refrigeration systems: These are critical and quite pricey. Options like ammonia-based or CO₂ refrigeration systems are common because...