The States Looking To Turn Cannabis Facilities Into Data Centers

Several states and provinces are considering repurposing struggling cannabis cultivation facilities as data centers, according to recent reports. This move aims to address the growing demand for AI and cloud computing infrastructure while dealing with the challenges faced by the cannabis industry due to falling prices and oversupply.

Phil DeVries, founder of Michigan-based Wolverine Consulting, pointed out that many cannabis facilities already possess the necessary characteristics sought by data center developers, such as zoning, electricity, proximity to the grid, and preexisting infrastructure. The similarities between cannabis cultivation facilities and data centers have attracted the attention of developers, as repurposing an existing facility can save time and resources compared to building a new one from scratch.

However, the cannabis industry has faced significant challenges lately, with sales declining in various states, leading to underutilized or vacant cultivation facilities. An example of this trend is the 32,850-square-foot cannabis cultivation facility in Kalamazoo, Michigan, which is being marketed for potential AI data center usage.

The property's founder, Michael Ward, highlighted that the building already has the foundational infrastructure required for advanced computing. While the trend of repurposing cannabis facilities for data centers is gaining traction, DeVries mentioned that only a limited number of properties will likely qualify for redevelopment due to various factors such as build-out, infrastructure, power availability, and distance to the grid and fiber.