The seizure was found during a planned search at a property in the area on Wednesday.
The man has been released on bail, pending further PSNI enquiries.
Chief Inspector Nicky Thompson said that officers have been working with the local community in Coleraine to tackle the issue of drug supply and distribution.
"The discovery of this cannabis factory is an indication of our commitment to remove drugs from circulation. Through seizures of this nature, we are reducing the harm that is caused by drugs in communities.
"We have taken these drugs off the street and have made our communities safer as a result. We will continue to work with communities and partner agencies to reduce the threat posed by drugs", he added.