Data Center IT Asset Disposition Market Size, Share & Industry Analysis, By Asset Type (Servers, Networking Devices, Storage Devices, End-to-End IT Equipment, and Others), By Service (Resale/Remarketing, Recycling, Data Sanitization & Destruction Services, IT Asset Value Recovery, and Others), By Industry Vertical (IT & Telecom, BFSI, Healthcare, Government & Defense, Education, Media & Entertainment, and Others), and Regional Forecast, 2025-2032

The global data center IT asset disposition market size was valued at USD 10.93 billion in 2024 and is projected to grow from USD 11.96 billion in 2025 to USD 23.66 billion by 2032, exhibiting a CAGR of 10.2% during the forecast period. North America dominated the market with a share of 41.35% in 2024.

Data center IT asset disposition defines the progression of systematically retiring and decommissioning IT assets from the live environment and making sure that they are disposed of in a data-safe, ecologically responsible way. Discharged IT assets are resold for the data center, recycled, or redeployed to another firm-owned service.

Global Data Center IT Asset Disposition Market Overview

Market Size:

• 2024 Value: USD 10.93 billion
• 2025 Value: USD 11.96 billion
• 2032 Forecast Value: USD 23.66 billion, with a CAGR of 10.2% from 2025–2032

Market Share:

• Regional Leader: North America held the largest share in 2024
• Fastest-Growing Region: Asia Pacific is projected to grow at the highest CAGR over the forecast period
• End-User Leader: The IT & Telecom industry dominated in 2024

Industry Trends:

• Asset Type Trend: Storage devices are expected to see the highest CAGR during the forecast period; servers held the largest share in 2024
• Service Trend: Resale/remarketing dominated the service segment in 2024, while recycling is projected to grow fastest
• Vertical Trend: Within industry verticals, IT & Telecom led in 2024, with healthcare expected to grow fastest

Driving Factors:

• Secure Data Disposal & Compliance: Increasing demand for certified ITAD services to meet regulatory and data security mandates
• Sustainability Mandates & E‑Waste Concerns: Growing focus on environmentally responsible asset disposition practices
• Data Center Consolidation & Cloud Migration: Frequent hardware refresh cycles and hybrid infrastructure transitions fuel market demand

As the dust resides on the seismic shift taken around by various conditions such as the pandemic, enterprises have to shift to the era of hybrid work. It leads to a reexamination of office spaces and downsizing, with concerns for entire office consolidations and relocations becoming essential to strategic planning. Due to such workplace transformations, the requirement for specialized data center IT asset disposition services (ITAD) has increased.

For instance,

• As per Align Communications Insights, 83% of the U.K. IT directors consider the demand for ITAD and data destruction services to rise, with around one in five (17%) expecting a dramatic growth in demand.

Impact of Generative AI

Rise in Interest for GenAI to Create Various New Prospects for Data Center IT Asset Disposition 

The rising interest in generative AI has caused an arms race to progress the technology, which needs several high-density data centers along with higher amounts of electricity to power them. On the demand side for data centers, big "hyperscale" cloud vendors and other corporations are developing large language models (LLMs) proficient in natural language processing. These models need to be trained on huge amounts of information with the help of power-intensive processors. On the supply part, data center operators, hyperscale cloud firms, and asset managers are installing huge amounts of capital to develop new large-capacity data centers. Thus, the growing usage of generative AI is resulting in the development of data centers with higher capacities. For instance,

• As per the Goldman Sachs Research estimations, the power utilization by the worldwide data center is over 55 gigawatts (GW). It includes cloud computing work operations (54%), traditional workloads for usual business functions such as AI (14%), and email or storage (32%).

The AI-focused data center is an emergent class of infrastructure. Though very few exist so far, they're developed for the distinctive properties of AI work operations — higher power density racks, high entire power requirements, and extra hardware (such as liquid cooling). Hyperscalers or wholesale operators usually own them.

Thus, the rise in advancements in technologies increases the need for the development of data centers and the properly disposing of their assets across various sectors, thereby creating numerous market opportunities.

Impact of Reciprocal Tariffs

The introduction of new tariffs presented by the U.S. administration can upsurge technology prices, disturb supply chains, and decline worldwide IT spending in 2025. These tariffs would not only have a straight inflationary impact on technology prices in the U.S., but rising concerns about a wider economic stoppage can lead to weaker investment by consumers and businesses across the globe.

Some hardware and device vendors might seek to lessen the impact, but U.S. customers would quickly experience the impact of higher prices. Lesser inventories and quicker manufacturing cycles mean that price hikes will arrive quickly. The wider, indistinct nature of such new tariffs makes it difficult for manufacturers to adjust. Such factors can impact the overall progress of the market.

DATA CENTER IT ASSET DISPOSITION MARKET TRENDS

Growing Preference for Data Sanitization to Propel Market Growth

Data sanitization refers to a process that irretrievably destroys or removes data stored on a memory device (flash memory / SSDs, hard drives, mobile devices, DVDs, CDs, etc.) or in any form of hard copy. It delivers enhanced benefits such as improved security, environmental sustainability, and regulatory compliance. It limits unauthorized data access, safeguards against data breaches, and assures compliance with privacy laws such as HIPAA and GDPR. By sanitizing data, enterprises can also minimize e-waste and uphold responsible disposal of IT assets.

Services such as data sanitization attract a higher portion of the ITAD budget. Hence, enterprises are erasing potentially trustworthy data from storage media. Hence, enterprises are preferring data sanitization for maximizing value recovering from excess or retiring hardware.

MARKET DYNAMICS

MARKET DRIVERS

Growth of Secure Data Protection and ITAD Compliance to Increase Demand for IT Asset Disposition for Data Centers

With growing data privacy regulations, data centers are prioritizing the protected IT asset disposition industry to avoid data breaches and safeguard sensitive information. Amenability with laws including HIPAA, GDPR, and CCPA is precarious, and limitations to following appropriate data destruction protocols can lead to severe penalties.

Various implementation requirements by data center vendors and enterprises compliance and secure data protection and data center IT asset disposition are as follows –

• On-site Data Destruction: More enterprises are demanding on-site hard drive slicing, and applying to safeguard data never leaves their sites unsecured.
• Certified Data Erasure: Data centers need ITAD vendors that deliver certified data destruction facilities to assure compliance with governing standards.
• Endwise Chain of Custody: Protected logistics tracking is presently a customary expectation, warranting accountability with the help of the IT asset disposal procedure.

Such different implementation requirements and the necessity for data protection increase the demand for data center IT asset disposition services in data centers.

MARKET RESTRAINTS

Lack of Attention and Inadequate Infrastructure Can Hamper Market Progress

Insufficient attention given to the disposition of IT assets can lead to significant risks, such as loss of control over confidential data, absence of compliance, and impacted overall performance of data centers.

Deteriorating to substitute equipment appropriately can be expensive and can harm an enterprise's reputation and upcoming business. Retiring equipment too early can be a waste of effortlessly perfect hardware, experiencing unnecessary expense and effort. Having prior knowledge of when to withdraw an IT asset can be complicated as every piece of equipment is diverse and needs control on an asset-by-asset basis.

In the major cases, it refers to making space for newer equipment that's more consistent and technologically better than its predecessors. Thus, failing to ensure appropriate infrastructure can hamper market progress.

MARKET OPPORTUNITIES

Rising Demand for ESG and Sustainability-driven ITAD to Create Several Market Opportunities

With Environmental, Social, and Governance (ESG) ingenuities gaining traction, enterprises are ranking environmentally accountable IT asset disposition as their top priority. Inappropriate discarding of electronic waste (e-waste) can cause considerable environmental damage and noncompliance consequences. For instance,

• As per the Roundup Insights 2024, there are approximately 347 million tons of unrecycled e-waste on the globe with the number increasing at a rate of 2 million tons each year. Fewer than 20% of e-waste is recycled, and the present volatile geopolitical climate is generating vast spikes in the price of particular materials.

Key sustainability inclinations in data center IT asset management include –

• Circular Economy Strategies: As a substitute for discarding IT assets, data centers are choosing for refurbishment and remarketing, reducing electronic waste and expanding the life of devices.
• E-Stewards and R2 Authorizations: More businesses are collaborating with licensed ITAD vendors to assure compliance with R2 environmental standards and e-Stewards.
• Carbon Footprint Minimization: Businesses are progressively tracking the environmental influence of their IT asset disposal and integrating various metrics into ESG reports.

Thus, the rising number of e-waste and thereby increasing sustainability inclinations creates numerous market opportunities.

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Segmentation Analysis

By Asset Type

Rising Data Storage Requirements to Upsurge Storage Devices Segment Growth

Based on asset type, the market is classified as servers, networking devices, storage devices, end-to-end IT equipment, and others (e-waste, etc.).

Storage devices are anticipated to dominate the market with the highest CAGR during the studied period, owing to rising cloud storage adoption and HD video content. The key factors comprise the growing demand for data storage, the growth of new storage technologies, and the incorporation of AI in storage management. For instance,

• As per Industry Experts, overall worldwide data storage is estimated to surpass 200 zettabytes by 2025. It comprises data stored on utility infrastructures, on public IT infrastructures, on private and public cloud data centers, and on personal computing devices.

Servers hold the highest market share in 2024, owing to the rising requirement for the disposition of servers across data centers. The appropriate disposition of IT servers includes safely and reliably managing their disposal and retirement, safeguarding secure data sanitization, and ecologically responsible reuse or recycling. Various benefits include improved data security, increased environmental sustainability, cost savings, authorized compliance, and prospective revenue generation over asset recovery.

By Service

Enhanced Financial Benefits of Resale/Remarketing Propelled Segment Progress

By service, the market is categorized into resale/remarketing, recycling, data sanitization & destruction services, IT asset value recovery, and others (field services, etc.).

Resale/remarketing dominated the market share in 2024. Resale/remarketing of data center equipment can aid enterprises in gaining financial benefits, such as recapturing investment tied up in hardware, and encourage sustainability by encompassing the lifespan of assets. By remarketing and reselling equipment, enterprises can increase the ROI (return on Investment) in data center infrastructure.

Recycling is projected to grow with the highest CAGR during the forecast period, as it helps businesses minimize ecological impact by offering electronic waste from landfills and preserving valuable resources with the help of the recovery of materials. For instance,

• In April 2025, Western Digital and Microsoft launched an initiative to recycle essential minerals from abandoned hard drives and data center equipment. The Advanced Recycling and Rare Earth Material Capture Program has previously recycled 50,000 pounds of shredded hard disk drives (HDD), increasing caddies and other materials into critical materials.

By Industry Vertical

Higher Requirement of IT Asset Disposition Processes within IT & Telecom Boosted Segment Expansion 

Based on industry vertical, the market is classified into IT & telecom, BFSI, healthcare, government & defense, education, media & entertainment, and others.

IT & telecom held the highest market share in 2024. Telecom data centers that aid services such as mobile networks and content delivery also necessitate strong data center IT asset disposition processes. Different challenges of telecom data centers, such as operational efficiency and complexity, uncertain data center requirements, and shifts in data center mechanisms, contribute to the segment's progress.

Healthcare is estimated to progress with the largest CAGR during the forecast period. Healthcare and data centers are progressively tangled, enhancing substantial IT spending. Hence, significant investments are being made in data centers to aid healthcare's rising data needs and digital transformation efforts, thereby increasing data centers and their IT asset depositions across healthcare. It helps them with numerous benefits, such as data storage, IT infrastructure, liquid cooling, cost savings, and many more benefits. For instance,

• With Microsoft Azure and Snowflake Data Factory, AMN Healthcare's data environment costs have decreased to USD 14,000 per month—dropped from USD 200,000—although storing around 50% more data.

Data Center IT Asset Disposition Market Regional Outlook

By region, the market is categorized into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America

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North America accounted for the highest market share in 2024, owing to a larger presence of high-tech businesses across several sectors, such as IT & telecom, healthcare, BFSI, and many other industries, thereby increasing data center infrastructure spending in the region. Also, growing concerns and government initiatives toward sustainability with respect to data center infrastructure and maintenance fuel the data center IT asset disposition market share in the region. For instance,

• As per the research from Caltech and UC Riverside specifies that pollution from data centers has caused more than USD 5.4 billion in healthcare expenditures in the U.S. in the previous five years.

Europe

The market in Europe is anticipated to progress considerably, owing to growing investments in data center infrastructure, cloud data centers, and Data center decommissioning. Countries such as Germany, the U.K., France, and other countries are actively implementing regulations and policies regarding data center discharging and asset disposal. Also, the growing number of data center infrastructures and demand for higher capacity data centers across different European countries contribute to market progress in the region. For instance,

• As per the Germany Trade & Invest Insights, with 2000 data centers and a size of approximately 2700 megawatts, German has the major digital infrastructure in Europe. The volume has twice since 2010 and looks set to enhance by 78% in coming years.

Asia Pacific

The market in Asia Pacific is predicted to grow with the highest CAGR during the studied period, owing to the rising expansion of data center infrastructure, severe e-waste and environmental regulations, and the growth of digital economies. Also, several companies operating in the region deliver a wide range of services, such as asset recovery, data destruction, and accountable disposal. Growing investments in data center infrastructures across different countries such as India, Japan, South Korea, and other countries support the market expansion of the region. For instance,

• In April 2025, Adani Group announced its plans to invest more than USD 10 billion in India, owing to the high demand for AI (artificial intelligence) and business process-driven services. The company has plans to invest USD 5.9 billion in data center infrastructure in Maharashtra. The Group is magnifying down on this sector, with the possibility of business from foreign governments.

Middle East & Africa

The market is undergoing significant progress in the Middle East & Africa owing to the mandate of data sovereignty laws, the shift to the cloud for hosting data by both enterprises and governments in the countries, rising connectivity of undersea cables to different countries, increasing consumption of data by enterprises, and many more.

South America

The surge of digital business, the rise in the usage rate of public cloud infrastructure, the augmenting demand for data center consolidation, the demand for compliant and secure disposal practices, and many other factors contribute to the data center IT asset disposition market growth in South America. Also, governments in countries such as Brazil are taking initiatives for the development of data infrastructure, network infrastructure, data security and compliance, cloud computing, and others to augment market progress.

COMPETITIVE LANDSCAPE

Key Industry Players 

Portfolio Expansions and Collaborations to Upsurge Business Growth

Players such as Dell Inc., Apto Solutions Inc., CloudBlue, Iron Mountain, Inc., Sims Lifecycle Services, and Arrow Electronics, among other key players, are introducing new solutions and services to enhance their positions in the market. These players form alliances, collaborations, and mergers to expand their business offerings and reach. Key data center IT asset disposition companies prioritize enhancing asset recovery, recycling, and sustainability services to strengthen their product offerings.

LIST OF KEY DATA CENTER IT ASSET DISPOSITION COMPANIES PROFILED

• Dell Inc. (U.S.)
• Apto Solutions Inc. (U.S.)
• Iron Mountain, Inc. (U.S.)
• CloudBlue (U.S.)
• Ingram Micro Inc. (U.S.)
• Sims Lifecycle Services (U.S.)
• Arrow Electronics (U.S.)
• Atlantix Global Systems, LLC (U.S.)
• Hewlett Packard Enterprise Development LP (U.S.)
• DMD Systems Recovery (U.S.)
• Advanced Technology Recycling (ATR) (U.S.)
• Closed Loop (U.S.)
• Quantum Lifecycle Partners LP (Canada)
• IBM (U.S.)

KEY INDUSTRY DEVELOPMENTS

• April 2025: ATR announced an investment in data center IT asset management services in the U.S. The strategic extension emphasizes ATR's commitment to offering enhanced logistics competencies and all-inclusive on-site services to data center operatives across the nation.
• April 2025: Dell Technologies announced the launch of infrastructure innovations developed to empower modern AI-based data centers. Dell PowerEdge R770, R670, R570, and R470 servers with Intel Xeon 6 Processors with P-cores are double and single socket servers in 1U and 2U form aspects that manage demanding customary and emergent work operations such as HPC, analytics virtualization, and AI inferencing.
• November 2024: DMD Systems Recovery, LLC expanded ITAD services with the acquisition of Basket Materials, a Bay Area-based ITAD firm. The acquisition reinforces DMD's reach in Northern California, improving provision for the Bay Area's local data centers and surging tech market.
• November 2024: Closed Loop Partners acquired a maximum portion of Sage Sustainable Electronics to fast-track IT asset management and disposition facilities in North America. The acquisition helps Sage Sustainable Electronics to strengthen its position in sustainable IT asset management disposition services in North America.
• February 2024: Quantum Lifecycle Partners LP expanded its presence in Canada and Alberta with the introduction of its sixth ITAD facility. The facility delivers data security services, e-waste sorting, logistics, and remarketing of outdated and unwanted electronic devices for enterprises of all sizes.
• June 2022: Apto Solutions introduced an environmental impact reporting tool that was developed to assist with ESG (environmental, social, and governance) reporting. The tool is an extension of the firm's proprietary Pulse platform that enables clients to understand the amount of greenhouse gas discharges saved from recycling and reuse activities with Apto.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, solution types, and end-users of the Data Center IT Asset Disposition. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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Report Scope & Segmentation