Where hyperscale hardware goes to retire: Ars visits a very big ITAD site
"The biggest risk is data escape."
'Aroogah! Aroogaz subsz crashing us data! a-fuh&*ingRoogah!
Eric Ingebretsen, chief commercial officer at SK TES, an IT asset disposition provider, tells me this early on during a tour of a 128,000-square-foot facility in Fredericksburg, Virginia. He will restate this a few times.
A big part of this site's pitch to its clients, including the "hyperscale" customers with gigantic data centers nearby, is that each device is labeled, tracked, and inventoried for its drives—both obvious and hidden—and is either securely wiped or destroyed. The process, commonly called ITAD (for "IT Asset Disposition") is used by larger businesses, especially when they upgrade fleets of servers or workers' devices. ITAD providers ensure all the old gear is wiped clean, then resold, repurposed, recycled, or destroyed.
In keeping with the spirit of client confidentiality, I could not take photos or videos during my visit, record our talks, or capture anything beyond what I could scribble in my notepad. (The images in this post are provided by SK TES and were not taken during my visit). I did, however, see some intriguing things and learn about what happens to all the drives and rack-mounted gear we call "the cloud" once anything gets more than a few years old.
Undocumented drives: The tiny terror
The loading docks at SK's facility are essentially divided into two: one section for the hyperscalers and one for everything else. SK is discreet about its clients, but given its northern Virginia location, you can make some guesses about some of the online-selling, search-result-providing, software-providing firms this site is servicing.
Pallets arrive in big, shrink-wrapped squares, as tall as my shoulders, with break-once security seals. Each device has its serial number assigned to an asset tag, one that will follow that unit through the whole facility. Laptops and desktops head to a retail station on a long roller line. At that spot, workers—the kind exceedingly familiar with all the BIOS startup keys—run an automated Blancco system to reset them at the firmware level. Workers sometimes have to dig deeper, like getting into a switch or router with SSH or undoing a RAID setup to enable programmed wiping.
Inside the laptop/desktop examination bay at SK TES's Fredericksburg, Va. site. Credit: SK tes
The details of each unit—CPU, memory, HDD size—are taken down and added to the asset tag, and the device is sent on to be physically examined. This step is important because "many a concealed drive finds its way into this line," Kent Green, manager of this site, told me. Inside the machines coming from big firms, there are sometimes little USB, SD, SATA, or M.2 drives hiding out. Some were make-do solutions installed by IT and not documented, and others were put there by employees tired of waiting for more storage. "Some managers have been pretty surprised when they learn what we found," Green said.
With everything wiped and with some sense of what they're made of, each device gets a rating. It's a three-character system, like "A-3-6," based on function, cosmetic condition, and component value. Based on needs, trends, and other data, devices that are cleared for resale go to either wholesale, retail, component harvesting, or scrap.
Full-body laptop skins
Wiping down and prepping a laptop, potentially for a full-cover adhesive skin. Credit: SK TES
If a device has retail value, it heads into a section of this giant facility where workers do further checks. Automated software plays sounds on the speakers, checks that every keyboard key is sending signals, and checks that laptop batteries are at 80 percent capacity or better. At the end of the line is my favorite discovery: full-body laptop skins.
Some laptops—certain Lenovo, Dell, and HP models—are so ubiquitous in corporate fleets that it's worth buying an adhesive laminating sticker in their exact shape. They're an uncanny match for the matte black, silver, and slightly less silver finishes of the laptops, covering up any blemishes and scratches. Watching one of the workers apply this made me jealous of their ability to essentially reset a laptop's condition (so one could apply whole new layers of swag stickers, of course). Once rated, tested, and stickered, laptops go into a clever "cradle" box, get the UN 3481 "battery inside" sticker, and can be sold through retail.
https://arstechnica.com/information-technology/2025/05/where-hyperscale-hardware-goes-to-retire-ars-visits-a-very-big-itad-site/
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