SK Tes on the rising need for secure, sustainable ITAD for the AI era.

SINGAPORE (July 31, 2023) – SK Tes, a global leader in IT asset disposition (ITAD) and technology lifecycle services today shared new insights on how artificial intelligence (AI) is accelerating data center refresh cycles worldwide, and how this shift is reshaping global supply chains, memory markets, and the value embedded in retired infrastructure.  

AI adoption is compressing hardware lifecycles at a pace not seen in more than a decade. Recent industry reporting shows that GPU-dense AI servers are now being refreshed in as little as 10-18 months, compared to traditional 4-6 year cycles. As enterprises race to meet the compute and networking demands of large-scale AI workloads. This accelerated cadence is creating an unprecedented surge in outbound equipment requiring secure, compliant, and value optimized disposition.  

“AI has fundamentally changed the cadence of infrastructure retirement,” says Eric Ingebretsen, Chief Commercial Officer at SK tes in a recent industry article examining the impact of AI on data center hardware turnover. “Enterprises are upgrading faster than ever, but the back-end processes for secure decommissioning and value recovery haven’t kept pace. That gap creates risk - and opportunity - for organizations that modernize their ITAD strategy”. 

As organizations deploy next generation AI hardware, they are simultaneously retiring large volumes of servers, storage arrays, networking gear, processors and memory modules. Without ITAD processes capable of handling high volume inflows of material, this accelerated refresh cycle can create operational bottlenecks, data-security exposure, and significant loss of recoverable value. Analysts note that the bottleneck in AI infrastructure is no longer just compute availability – it is the ability to turn over infrastructure quickly, safely, and sustainably.  

SK tes’ global ITAD and decommissioning capabilities are designed for this new reality. With more than 40 facilities worldwide, the company supports high-speed, high-volume decommissioning programs for enterprises, cloud providers and hyperscalers. SK tes’ onsite services, including data sanitization, rack‑level decommissioning, component harvesting, and secure logistics, enable organizations to clear space, mitigate risk, and accelerate redeployment or resale without operational disruption.

Insights from the recent SK tes Market Insights Report highlight that AI-drive refresh cycles are also intensifying pressure on global memory supply chains. AI data centers now consume an estimated 70% of all memory chips produced worldwide, as manufacturers shift production toward high-bandwidth memory (HBM) for AI accelerators. This shift continues to reshape availability of conventional DRAM and has contributed to significant pricing volatility across the market.

DDR4, still widely deployed across millions of servers and embedded systems, is nearing end‑of‑life as major manufacturers phase out production in favor of DDR5 and HBM. While DDR4 pricing surged in the first quarter of the year, recent large-scale releases of inventory have drive sharp, short-term declines, illustrating how rapid and unpredictable the market has become.

ITAD has emerged as a critical secondary source of DDR4 during this transition. As enterprises retire DDR4‑equipped servers during AI refresh cycles, SK tes’ refurbishment and value‑recovery programs are returning high‑quality, tested, and validated DDR4 modules to the market, helping alleviate shortages, stabilize pricing, and extend the usable life of legacy platforms.

“AI is forcing a complete re-architecture of the data center lifecycle,” Ingebretsen added. “Organizations need repeatable, global processes and expert program management to manage complexity, protect data, and unlock value tied up in decommissioned equipment”.  

As enterprises accelerate AI‑driven refresh, consolidation, and decommissioning programs, SK tes continues to invest in global capacity, standardized processes, onsite capabilities, and advanced data‑sanitization technologies to support the next wave of infrastructure transformation.