Urban agriculture (UA) is emerging as a promising strategy for sustainable food production in response to growing environmental pressures. Indoor vertical farming (IVF), combining Controlled Environment Agriculture (CEA) with Building-Integrated Agriculture (BIA), enables efficient resource use and year-round crop cultivation in urban settings. This study assesses the environmental performance of a prospective IVF system located on a university campus in Portugal, focusing on the integration of photovoltaic (PV) energy as an alternative to the conventional electricity grid (GM). A Life Cycle Assessment (LCA) was conducted using the Environmental Footprint (EF) method and the LANCA model to account for land use and soil-related impacts. The PV-powered system demonstrated lower overall environmental impacts, with notable reductions across most impact categories, but important trade-offs with decreased soil quality. The LANCA results highlighted cultivation and packaging as key contributors to land occupation and transformation, while also revealing trade-offs associated with upstream material demands. By combining EF and LANCA, the study shows that IVF systems that are not soil-based can still impact soil quality indirectly. These findings contribute to a broader understanding of sustainability in urban farming and underscore the importance of multi-dimensional assessment approaches when evaluating emerging agricultural technologies.