Why trust Greenbot
Microsoft just gave 3.2 million server components a second chance at life. The company says it reached a 90.9% reuse and recycling rate for its data center hardware in 2024, beating its target of 90% a full year ahead of schedule.
Six specialized recycling facilities called “Circular Centers” drove this achievement. These centers take apart old servers, test the components, and find new uses for them instead of sending them to landfills.
Parts recovered from old servers go to three main places. Some return to Microsoft’s own data centers, others are sold to different companies, and many are donated to schools and job training programs.
Beyond reusing parts, Microsoft teamed up with Western Digital, Critical Materials Recycling, and PedalPoint Recycling to process 50,000 pounds of old hard drives. From these, they recover rare earth elements like neodymium and valuable metals such as gold and copper.
“Through material recovery…we’re not just reducing waste, we’re conserving resources and lowering emissions,” explained Melanie Nakagawa, Microsoft’s Chief Sustainability Officer. “It’s proof that circularity is both possible and impactful, and can benefit the triple bottom line of people, planet, profit.”
Their recovery method doesn’t use acid, cutting their emissions by 95% compared to traditional mining and reducing dependence on China for rare earth materials while strengthening American supply chains. This comes as China recently imposed restrictions on the export of six heavy rare earth metals in response to US tariffs.
Better packaging also helped Microsoft reach its goal. Microsoft worked with over 150 manufacturers to redesign server rack packaging for easier recycling. This kept more than 2,500 tons of waste out of landfills in 2024, including packaging from over 30,000 server racks.
The Circular Centers first launched in Amsterdam in 2020. Microsoft now operates additional facilities across the United States, Ireland, and Singapore.
Microsoft plans to open three new Circular Centers in Cardiff (Wales), New South Wales (Australia), and San Antonio (Texas). These facilities will further connect their recycling operations worldwide.
This waste reduction success marks progress toward Microsoft’s larger 2030 environmental goals. The company aims to become carbon-negative, water-positive, and land-protective within the next five years.
However, these achievements come as Microsoft’s total greenhouse gas emissions continue to rise. The rapid growth of its artificial intelligence and cloud computing services creates a challenging balance between business expansion and environmental responsibility.
