Microsoft Surpasses Circular Economy Target, Achieves 90.9% Reuse and Recycling Rate for Data Center Hardware
February 10, 2026
In a significant stride toward sustainable technology infrastructure, Microsoft has announced it exceeded a key environmental target ahead of schedule, achieving a 90.9% reuse and recycling rate for its cloud servers and components in 2024. This performance surpasses the company’s 2025 goal of 90% and underscores a growing industry imperative: decoupling the exponential growth of data centers and cloud computing from their environmental footprint through circular economy principles.
The milestone was driven by the expansion and refinement of Microsoft’s global network of specialized Circular Centers. The initiative began with the opening of the first facility in Amsterdam, Netherlands, in March 2020, and has since expanded to locations including Dublin, Ireland; Boydton, Virginia; and Singapore. Further expansions are planned for Cardiff, Wales; New South Wales, Australia; and San Antonio, Texas, in 2025. At these centers, decommissioned hardware is systematically sorted, tested, and directed for reuse, resale, donation, or material recovery.
Key to this effort is the large-scale recovery of valuable materials. In collaboration with partners like Western Digital, Critical Materials Recycling, and PedalPoint Recycling, Microsoft processed approximately 50,000 pounds of retired hard drives in 2024. This operation recovered rare earth elements such as neodymium and dysprosium, as well as gold and copper, while reducing associated emissions by an estimated 95% compared to conventional mining. Internally, the company’s component reuse program tripled in volume from 2023 to 2024, facilitating the reuse of more than 3.2 million server parts and increasing total value recovery by 30%. An additional packaging recycling program has diverted over 2,500 metric tonnes of waste from landfills by processing more than 30,000 server racks globally.
Underpinning these physical operations is the Intelligent Disposition and Routing System (IDARS), a technology platform integrated with Microsoft’s supply chain management systems. Utilizing AI and machine learning, IDARS creates a zero-waste plan for each hardware asset, ensuring efficient routing, regulatory compliance, and data security. “We’re saving costs, gaining efficiency and discovering new opportunities for hardware and infrastructure components,” said Rani Borkar, Corporate Vice President of Azure Hardware Systems and Infrastructure at Microsoft. “By redesigning systems to reduce waste, then reusing and recovering materials wherever possible, we’re redefining how technology can support responsible growth.”
The implications of this model extend beyond Microsoft’s direct operations, influencing broader industry practices and local economies. The upcoming Circular Center in Cardiff, for instance, is designed to stimulate the UK’s green economy by collaborating with local recyclers and creating jobs. Decommissioned equipment is also being repurposed for skills training in schools, while partnerships in Asia give used memory components a second life in consumer electronics.
This achievement is a core component of Microsoft’s ambitious sustainability vision, which includes goals to become carbon negative, water positive, and achieve zero waste by 2030. With its cloud services powered by millions of servers across more than 60 global regions, the company’s circular economy strategy is critical to scaling sustainably. “This milestone reflects our dedication and is just one part of achieving zero waste by 2030,” stated Melanie Nakagawa, Microsoft’s Chief Sustainability Officer. “What strikes me most is the creativity and innovation that made it possible… It’s proof that circularity truly benefits people, planet and profit.”
Source: sustainabilitymag
