Across the globe, data centers are rising at an unprecedented rate, and with them, a powerful opportunity to rethink how we build, operate, and renew the digital infrastructure that drives our world. The scale of this build-out is staggering: the global data-center construction market is expected to nearly double from $240.97 billion in 2024 to $456.50 billion by 2030, growing at an annual rate of almost 12% (Grand View Research). The broader data-center industry, which includes services, hardware, and operations, is projected to reach $652 billion by 2030 (Grand View Research). According to industry analysts, we’ll see more than 8,000 data centers worldwide by 2030, including hundreds of new hyperscale facilities purpose-built for artificial intelligence workloads (ABI Research).
This growth represents a critical inflection point for the circular economy. The vast expansion of server halls, cooling systems, power infrastructure, and data racks means enormous material flows, including concrete, steel, crates, cabling, and packaging. Each new facility brings with it streams of construction waste, electronic waste (e-waste), and packaging materials that, without careful planning, too often end up in landfills. As demand for “AI-ready” data centers grows by more than 30% annually through 2030, the environmental stakes rise in tandem (McKinsey & Company).
From our own All About Waste (AAW) waste audits of data centers during operations, we consistently find that the amount of waste, both by weight and volume, is substantial. Wood pallets and crates, plastic films, and cardboard consistently rank as the top three waste streams. These materials, which often arrive as shipping protection or equipment carriers, are typically landfilled or downcycled because on-site segregation is inconsistent or local recycling infrastructure is limited. Yet, these same materials could be the foundation of a more circular system rooted in reuse, recovery, and redesign.
From Design to Operations: Embedding Circular Strategies
Circular thinking begins at the design stage. In the design and build phase, project teams can specify reusable or remanufacturable components, such as modular cable trays, racks, and containers that can be disassembled, reconfigured, or repurposed as technology evolves. Designing for adaptability and anticipating future equipment upgrades or density changes helps prevent unnecessary demolition and material waste later on.
AAW encourages clients to establish take-back programs with suppliers for pallets, shipping crates, and protective packaging, ensuring that these materials are returned, reused, or recycled through closed-loop systems. On-site segregation of major waste streams such as wood, foam, plastics, cardboard, and e-waste also makes a measurable difference. Tracking the volume and weight of each stream allows project teams to set diversion targets and hold contractors accountable for circular outcomes.
Circular practices don’t end at construction. During the operations and upgrade phase, data centers can extend the life of existing assets through reuse and resale of older equipment, such as server racks or cooling systems, instead of disposal. Ongoing tracking of material flows helps teams identify reduction opportunities over time. For facilities in remote areas with limited recycling and composting access, AAW recommends buildinglocal reuse or recycling hubs that divert waste while also supportinglocal workforce development[JD1] . One of AAW’s most innovative circular proposals is repurposing existing infrastructure such as decommissioned shopping malls, big-box retail sites, or warehouse-style buildings for data-center use. These structures already have robust foundations, large floor plates, and high load capacities, making them ideal for retrofitting. Reusing existing buildings can significantly cut embodied carbon and reduce demolition waste while improving community access to the jobs and economic benefits that come with new data-center projects. Many of these properties are located near urban centers, where grid connections, fiber access, and local workforce availability are stronger than in remote sites.
Recent developments, such as Google’s adaptive reuse conversion of the 13-story One Wilshire West building in Downtown Los Angeles (left), demonstrate the feasibility and value of this strategy. By transforming an existing structure instead of building new, the project avoids the embodied carbon associated with new construction and supports economic activity within an existing urban core.
Waste Reduction, Community Impact, and the Path Forward
Circular strategies in data-center development don’t just reduce waste, they multiply value. Reusing wooden crates, recovering plastics and cardboard, and designing adaptable layouts all lower environmental impact and save money over time. They also foster new industries around refurbishment, remanufacturing, and logistics, which in turn create local, inclusive employment.
This aligns closely with the Ellen MacArthur Foundation’s principle that circular strategies can help address regional inequality by anchoring economic activity in communities. It also reflects the intent of TRUE for Construction, a zero-waste framework that AAW has successfully applied in public-sector projects. In a recent partnership with Contra Costa County (below), AAW helped divert over 80% of construction and demolition waste through proactive reuse planning and contractor coordination. This pilot demonstrated that even complex projects can achieve high diversion rates when circular practices are embedded from day one.
AAW’s work also integrates WELL Building Standard and Fitwel frameworks to ensure that circularity aligns with health, wellbeing, and social value. Through zero-waste education programs, multilingual outreach, and customized facilities training, we help organizations build the internal culture needed to sustain circular operations long after construction is complete.
As the world builds the digital backbone of the 21st century, we face a choice. We can continue a linear path of take–make–waste — or we can seize the opportunity to create circular data centers that are adaptable, resource-efficient, and community-driven. By embedding reuse, modularity, and material recovery from design through operation, data-center growth can become a driver of resilience, equity, and regeneration.
At All About Waste, we believe that every new or retrofit data-center project is a chance to demonstrate that the circular economy isn’t just about sustainability — it’s about smart design, long-term value, and shared prosperity.
Posted 12/15/25
About the Authors:
Denise Braun
Denise Braun is the Founder and CEO of All About Waste, with more than 21 years of experience in sustainable building, zero waste systems, and circular design. A global award-winning leader, she has supported the certification of 200+ LEED projects, 14 WELL-certified spaces, and over 100 TRUE Zero Waste certifications worldwide. With a background in education, psychology, and behavior change, Denise integrates human-centered design with technical sustainability strategies to drive measurable impact. A LEED AP, WELL AP, and TRUE Advisor, she also volunteers on national technical advisory groups and frequently speaks at leading industry conferences, including Greenbuild, ULI, and AIA.
Isabelle Farah
Isabelle Farah is a LEED Green Associate and TRUE Advisor with over a year of experience in circular economy and zero waste consulting. At All About Waste, she supports operations, marketing, and client projects, including consulting and research support to San Francisco International Airport, helping guide their indoor and outdoor waste-bin upgrade initiative. She also successfully managed a TRUE for Construction Gold-level certification for a global financial client in Pune, India. Isabelle earned a BA in Entrepreneurship with a minor in Creative Advertising from the University of Miami and previously worked as a Research Analyst at NBCUniversal Telemundo. During that time, she completed certifications in Introduction to Zero Waste and Sustainable Packaging in a Circular Economy to transition into sustainability.
