PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887065
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887065
The global data center IT asset disposition (ITAD) market continues to gain strong momentum as organizations worldwide accelerate digital transformation, migrate to hybrid IT environments, and adopt stricter compliance frameworks. According to the latest report, the market was valued at USD 10.93 billion in 2024, driven by rising data volumes, increased data center construction, and growing need for secure decommissioning of IT hardware. In 2025, the market is projected to increase to USD 11.96 billion, supported by stringent sustainability mandates, regulatory pressures, and higher refresh cycles for enterprise IT equipment. By 2032, the global ITAD market is expected to reach USD 23.66 billion, expanding at a robust CAGR of 10.2% from 2025 to 2032.
North America dominated the market in 2024, holding a 41.35% share, owing to its extensive IT infrastructure, strong presence of technology companies, and rapid adoption of cloud and AI workloads.
Market Overview and Growing Importance of ITAD
Data center IT asset disposition refers to the structured process of retiring, decommissioning, and securely disposing of IT equipment while ensuring data protection and environmental responsibility. As organizations face rapid technological advancements, regulatory obligations, and security risks, ITAD services have become essential to maintain operational integrity and compliance.
The shift toward hybrid work models since the pandemic has amplified ITAD requirements. Enterprises downsizing office spaces or consolidating IT resources now rely on specialized asset disposition services to manage secure device retirement.
According to Align Communications Insights, 83% of U.K. IT directors expect rising demand for ITAD and data destruction services, indicating the global scale of this trend.
Role of Generative AI in Shaping ITAD Demand
The surge in generative AI (GenAI) adoption is reshaping data center infrastructure. AI requires high-density computing environments powered by GPUs, TPUs, and advanced processors, contributing to faster hardware lifecycle turnover. Hyperscale data centers dedicated to AI workloads demand enhanced thermal management, liquid-cooled architectures, and high-performance, power-intensive racks.
As per Goldman Sachs Research, global data centers currently consume over 55 GW of power, reflecting the rising infrastructure load driven by AI training and inference demands. As more data centers upgrade or expand facilities to support AI, the need for ITAD services increases significantly for end-of-life hardware, secure data destruction, and sustainable recycling.
Regulatory & Tariff Impacts
The introduction of new U.S. tariffs on technology imports may increase equipment prices, disrupt supply chains, reduce IT spending, and indirectly influence ITAD demand. With shorter refresh cycles and increased cost pressures, companies may turn toward refurbished or remarketed IT equipment, further expanding the ITAD market's resale and value-recovery segments.
Key Market Trends
Growing Adoption of Data Sanitization
Data sanitization remains a critical ITAD component due to strict data privacy laws, including GDPR, CCPA, and HIPAA. Enterprises increasingly allocate higher budgets toward certified data destruction to prevent breaches. Sanitization ensures irretrievable removal of sensitive data, keeping enterprises compliant and environmentally responsible.
Market Drivers and Restraints
Drivers
Restraints
Major Market Opportunities
Sustainability-Driven ITAD Adoption
With 347 million tons of global unrecycled e-waste, sustainability is now a critical priority. Organizations adopt circular economy strategies-refurbishment, remarketing, and responsible recycling-to reduce environmental impact and enhance ESG reporting compliance.
Segmental Insights
By Asset Type
By Service
By Vertical
North America
Europe
Asia Pacific
Middle East & Africa & South America
Conclusion
The global data center IT asset disposition market, rising from USD 10.93 billion (2024) to USD 23.66 billion (2032), is expanding rapidly due to compliance needs, sustainability pressures, and the surge in AI-driven data center upgrades. As organizations prioritize secure asset retirement and environmental stewardship, ITAD will remain integral to global data center operations.
Segmentation By Asset Type
By Service
By Industry Vertical
By Region