Struggling cannabis growers eye their grow houses as small AI data centers

Some cannabis growers facing falling prices are looking at converting their cultivation buildings into small AI data centers, Tom's Hardware reported, citing Arizona Public Media. Sales in the industry peaked in 2024 and oversupply has pushed prices down.

Grow houses already have much of what data centers need: large power connections, water and climate control. Tom's Hardware cites a Forbes look at a 32,850 square foot facility in Kalamazoo, Michigan, wired for 1.5 megawatts and expandable to 2.5 megawatts within a year. "These facilities can potentially be repurposed to be mini data center nodes," said Moe Asnani, a former Tucson dispensary owner. Tucson council member Paul Cunningham said he was open to such reuse because the buildings already used that much energy and water.

It may not pay off. Niki Krear of NewLake Capital Partners, a REIT that owns cannabis properties, told MJBizDaily that operators look for affordable power, dense fiber and favourable taxes. Data centers often need two to three times the power these sites have, and upgrades can take up to five years.