Editor’s note: Electronics recycling will be featured in sessions at the 2026 E-Scrap: The Longevity Conference Oct. 26-28 in New Orleans.
A little preparation will go a long way toward meeting the crescendoing wave of electronic scrap that today’s data centers will generate tomorrow, according to several ITAD industry experts.
Several speakers at this week’s ITAD Summit in Las Vegas echoed the sentiment that ongoing data center construction is setting up a surge in activity within the industry.
The industry isn’t slowing down. Pew Research Center data shows more than 3,000 operational data centers in the US alone, with thousands more under development. The Federal Reserve estimates that nearly $60 billion of private dollars was spent in May 2026 alone on data centers, up 20% from the year prior ($48.21 billion).
Those new centers will need the newest equipment, which is costly and has a short shelf life, according to Mike DiPetrillo, CEO of ITAD platform designer Layer IQ Technologies. Data center devices have an expected turnover rate of 12-18 months (as opposed to 3-7 years for most mainstream electronics), meaning a cascade of discarded electronics will continually flow into the ITAD space.
“If you don’t have data and processes in place, it’s going to be at a critical point,” he said.
That extends to both the sheer volume of devices and the types of equipment that ITAD processors will see. Rob Alston, CEO of decommissioning and logistics company Guardian Data, said the advanced chips needed to power the graphics processing units (GPUs) that enable AI computing in data centers create more weight and more value, in some cases more than $1 million per server rack. And these more powerful devices require more advanced liquid cooling, creating the need for a more advanced infrastructure.
Those forces have combined to spark new entrants into the business weekly, each of which will have ample opportunity to create market share by catering to the industry’s advanced needs.
“There’s so much opportunity there,” he said. “They can all set out separate sales rates and all do very well.”
But there’s a catch, even when dealing with motherboards, processors and other high-value components that retain a lot of useful life beyond the data center. Given how quickly the technology develops, sitting on product for long time would be a bad idea, according to Pamela Bains, president and CEO of Microcad Computer Corp. of Ontario.
Data center construction has created a global shortage in memory capacity, contributing to a 400% increase in dynamic random access memory since the start of 2024, according to JP Morgan. Those same centers eating up supplies now will generate a lot of discarded product in the near future while simultaneously driving future demand for the next generations of processing chips and related equipment. That will allow those in the ITAD space to sell at a more favorable price point.
“AI equipment will be selling a lot quicker than regular things without AI chips,” she said. “Once these centers do a refresh, we are going to be inundated with a lot of product. Get rid of equipment as quickly as you can.”
Evolving tech will correlate with infrastructure that will have to adapt to next-generation equipment, as well. Bigger devices and higher GPU volumes will require center retrofits and relocations, according to Ashley Foreman, executive vice president of sales and marketing at ITAD company Dynamic Lifecycle Innovations. So companies that can jump in and support such needs will gain an additional edge, she said.
So will those firms that prepare for the types of devices that are coming. Julian Mitchell, chief information officer for logistics platform developer G2RL, cited the example of one client who ran a return center that processes 600,000 units per year. That client saw an eight-figure improvement in return by adjusting its process to evaluate products before processing, allowing for more accuracy in the scrap-versus-refurbish debate.
“They were bleeding revenue because parts were going to scrap that had valuable materials, or parts not worth anything were being brought to market,” he said. “If you can’t look outside your previous results, you have blinders on to some degree.”
Industry leaders agree ITAD companies need to have their eyes open to the challenges that are coming and look for the opportunities that will result.
“We can’t predict when it will come, but it is coming at some point,” Foreman said.
