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As the demand for cold storage facilities soars to meet the needs of an increasingly global supply chain, the U.S. is facing a crippling shortage. But the problem isn’t just a lack of space. With most existing facilities over 35 years old, these aging warehouses are straining to support today’s climate-controlled logistics. Simply put, the infrastructure hasn’t kept up with innovation.
To continue supporting the food and beverage, grocery, and pharmaceutical industries, developers and A+E firms must work together to create spaces that not only serve their current purpose but can also transform in years to come as technology and needs shift. America’s Cold Storage industry is not simply growing but completely transforming, so the question becomes how invested parties can best transform with it.
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The Cold Storage Conundrum
Three distinct forces—aging infrastructure, explosive demand for these spaces, and constantly evolving technology and automation—are converging, resulting in quite the conundrum. Furthermore, developers and retailers are searching for space for these facilities, and the Cold Storage market is poised to grow by more than 18% annually by 2030. Still, the sobering reality is that much of the current cold storage real estate is already spoken for, and with varying needs and regulations based on what is being stored in the facilities, more speculative cold storage spaces are needed for new players in the industry. As the industry transforms, the challenge now is to build flexibly, not just functionally.
Cold storage isn’t one-size-fits-all: temperature zones, automation compatibility, and logistics integration vary by product type, meaning tomorrow’s success hinges on today’s adaptability. The success of a cold storage facility is primarily determined before the foundation is poured. Critical decisions about refrigeration systems, automation infrastructure, and energy efficiency measures can’t be afterthoughts—they’re the cornerstone of these future-ready designs.
Designing for Flexibility
The future of cold storage means designing for future flexibility. As technology and the workforce needs ebb and flow, so do cold storage facilities. Developers must capitalize on this upswing to stay ahead of the demand for viable, scalable cold storage facilities. By embracing a speculative cold storage model, some developers around the nation have started to do just that. In fact, the first spec cold storage facility on record was completed in 2019 in the DFW metroplex.
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Planning for a Speculative Cold Storage Facility
Simply put, instead of building with an XYZ client in mind for a spec Cold Storage warehouse, a developer would provide a partially unfinished shell for the client to fit out. This is more advanced than designing a built-to-suit office building; however, because of the intricacies that come with cold storage facilities. Things like 50’+ ceiling heights are nonnegotiable, allowing Automated Storage and Retrieval Systems (ASRS) and other automated picking technologies often used in these spaces to move freely. Automation is ideal in cold storage facilities; however, not all systems are rated for extreme cold temperatures, so making sure to choose the right solutions for your temperatures is crucial to maintaining the integrity of these systems.
Another aspect of these facilities is the partially completed floors. The right floor construction system is as crucial as ceilings are in these spaces. When it comes to cold storage facilities, the concrete pad must not only be exceptionally level but also designed with a heating system to prevent floor heaving caused by subgrade freezing. In best case scenarios, electric or glycol-based underfloor heating should be non-negotiable, especially in freezer rooms. Designers and engineers know from experience that one thing that can upset the delicate balance found in cold storage facilities—moisture. While insulation is important, good moisture management is key to a well thought out facility.
As land prices go up, making the most of every square foot—both inside the building and the site around it—becomes more important. Cold goods need to move quickly to stay fresh, so smart site planning is essential. Cold storage facilities require more space, smoother traffic flow, easy building access, and extra parking. Most cold storage sites should accommodate buildings in the 200,000 to 300,000 square foot range, with additional space allocated for loading docks, trailer storage, and efficient truck circulation.
The Case for Upcycling
While speculative cold storage facilities are a newer answer to the question around updating and expanding the cold storage chain, they aren’t the only solution. Upcycling existing spaces can be a strategic move for developers—particularly in today’s landscape, where land is increasingly scarce and expensive, and demand for cold storage continues to rise. One emerging trend is the repurposing of shallow bay warehouses in urban areas, which are well-suited to support last-mile delivery while meeting the increased need for cold storage closer to population centers. Repurposing existing structures not only makes efficient use of space but also supports proximity to final delivery points—critical for retailers aiming to uphold product quality and meet growing expectations for fast, reliable delivery.
Moreover, a well-designed retrofit can significantly reduce long-term operating expenses. Developing a Design to Automation Framework for early building assessments using reality capture technology can set the stage for an effective retrofit. Investing upfront in smart layout, insulation, and system integration pays off over time, especially when incorporating modern technologies. For example, using a centralized Building Management System (BMS) enables precise monitoring and control over HVAC, refrigeration, lighting, and humidity. These systems also provide real-time alerts for temperature deviations, equipment malfunctions, or open dock doors—allowing operators to respond quickly and protect inventory.
Upcycled facilities can also support predictive maintenance strategies using sensor data, which helps reduce downtime, extend equipment life, and optimize energy use. In many cases, a smart retrofit can offer the same technological advantages as a new build—at a lower cost and with a faster turnaround—making it an attractive and future-focused option for expanding cold storage capacity.
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A More Sustainable Solution?
As consumers seek healthier, fresher food options—often frozen at peak ripeness—the demand for cold storage continues to grow. But these same consumers also care about the environment and expect the brands they support to do the same. That puts pressure on cold storage operators to reduce their environmental impact, especially since these facilities are energy-intensive. In fact, in 2018, cold storage accounted for about 2.5% of total greenhouse gas emissions, largely due to the energy required to keep food, medicine, and other goods safely refrigerated.
The push for same-day and last-mile delivery adds more complexity. Retailers are now looking to convert urban spaces into cold storage hubs, which raises the stakes even higher when it comes to energy use and sustainability. In response, both public and private players are working to create a cleaner cold chain. A big step is moving away from traditional refrigerants—many of which have extremely high global warming potential (GWP)—and toward HFC-free (hydrofluorocarbon-free) alternatives. For example, propane has a GWP of just 3, compared to older refrigerants with GWPs over 1,400. These greener options are not only better for the environment but often improve energy efficiency as well.
As brands push toward net-zero emissions, many are updating older systems in phases; choosing solutions that balance sustainability, cost, and operational demands. While the industry has made important progress, there’s still work to do. The goal is to find the right balance between meeting consumer expectations, reducing environmental impact, and staying attractive to investors and city planners.
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The Role of Automation in Future-Proofing Cold Storage
As the cold storage industry continues to evolve, automation-ready design is becoming a key component of future-proofing facilities. With labor shortages persisting across logistics and warehousing, especially in specialized environments like cold and frozen storage, automation offers a scalable and sustainable solution. Facilities built or retrofitted with automation in mind, such as accommodating automated pallet handling systems, ASRS, or robotic picking, are better positioned to adapt to changing labor markets and throughput demands.
Integrating automation also enhances long-term flexibility. Systems can be upgraded or reconfigured as technologies advance, enabling operators to respond more efficiently to shifts in product mix, order profiles, or distribution models. This strategic foresight not only reduces dependency on manual labor but also aligns with broader trends toward operational efficiency and reliability. At HFA, automation is more than a trend; it's a design imperative. Our approach embeds automation-readiness from the ground up, ensuring clients are equipped to lead in a rapidly transforming supply chain environment.
The cold storage facilities we design today must do more than meet current demands—they need to be built for what’s next. As volumes increase, technologies evolve, sustainability standards tighten, and workforce dynamics shift, facilities must be ready to adapt. This is where future-proofing through smart, automation-ready design becomes critical. By planning for automation and centralized system integration from the outset, developers can reduce reliance on labor, streamline operations, and create flexible environments that grow with the industry.
The gap between current capacity and future demand isn’t just a challenge; it’s an opportunity to reimagine cold storage as intelligent, adaptable infrastructure. The decisions made at the design stage will define long-term efficiency, cost-effectiveness, and competitive advantage. The future of cold storage isn’t just about keeping things cool; we must create responsive, resilient facilities that evolve in step with technology, consumer expectations, and global supply chain needs.
