SK tes secures a foothold in Virginia, the world's largest data center market, home to tech giants like Amazon and Microsoft
Capable of processing 600,000 servers annually, the largest among its US facilities ··· Steps forward in the global ITAD market
Bright growth prospects for the ITAD market ··· Expected to grow 8% annually, from $19 billion in 2022 to $41 billion by 2032
SK ecoplant is expanding its presence in the global market by securing another foothold in the United States through its recycling-focused subsidiary, SK tes.
On the 13th (local time), SK ecoplant announced that its subsidiary, SK tes, had completed the construction of a hyperscale data center-dedicated ITAD (IT Asset Disposition) facility in Fredericksburg, Virginia, a rapidly emerging global data center hub. The facility spans approximately 12,000 square meters.
The opening ceremony was attended by Jae-Yeon Cho, Head of SK ecoplant's Environment BU, Terence Ng, CEO of SK tes, Abigail Spanberger, U.S. House Representative for Virginia, Se-Ryung Ahn, Economic Counselor at the Korean Embassy in the U.S., and representatives from SK tes's client companies, among others.
ITAD is a service that handles various IT assets, from smartphones, laptops, and PCs to data center servers, ensuring complete data destruction and supporting recycling and reuse. IT assets that undergo the ITAD process are either refurbished and resold or dismantled and sold as parts (such as RAM) or materials.
The newly constructed Virginia facility can process up to 600,000 individual servers annually, focusing on data center ITAD. It ensures complete data destruction from hard disks and memory in data center servers, followed by reuse and recycling.
SK tes aims to become a leader in the data center ITAD market by leveraging its capabilities in providing secure information management services, and processing large volumes of data quickly and safely. The company plans to strengthen its presence in the North American ITAD market by linking the new Virginia ITAD facility with its existing four ITAD facilities in the U.S.
Global IT companies are establishing hyperscale data centers in major cities worldwide to meet the surging demand for cloud services and large-scale data processing and analysis for AI implementation. Virginia, where 70% of the world's online data passes through, is recognized as the world's largest data center market and a strategic hub. Major tech companies like Amazon and Microsoft have established data centers in Virginia, with many new hyperscale data centers planned or under construction.
Considering Virginia's strategic location, SK tes preemptively established the ITAD facility. The company plans to attract new clients, including large cloud, platform, and IoT companies, as well as financial institutions with high information security needs. SK tes aims to secure ITAD volumes from hyperscale data centers in North America, including Virginia, within the next three years.
SK tes's ITAD capabilities are well-regarded, leveraging its expertise across the entire e-waste value chain. The ITAD business requires compliance with various laws and regulatory environments due to the strict protection needed for personal information and brands. SK tes has established long-term trust with global clients by obtaining multiple permits, providing perfect information security services, and adapting to waste regulations. Last year, Gartner named SK tes as one of the 'Top 3' companies capable of providing comprehensive ITAD services globally, alongside Iron Mountain (USA) and Sims Lifecycle Services (Australia).
The growth prospects are also promising.
The ITAD and e-waste markets are expected to rebound in line with the recovery of the semiconductor and IT industries. According to Allied Market Research, the e-waste industry, valued at approximately $50 billion in 2020, is projected to nearly triple to about $144 billion by 2028. Global Market Insights forecasts the ITAD market, valued at around $14.5 billion in 2022, will grow 8% annually, reaching approximately $31.4 billion by 2032.
Reflecting the industry's growth prospects, SK tes plans to expand its ITAD business. With 46 locations in 23 countries, SK tes holds the most global ITAD facilities in the industry. By 2026, the company plans to establish additional data center-dedicated ITAD facilities in Singapore, Australia, and other locations, raising its capacity to process up to 1 million individual servers annually.
Recently, SK tes changed its name from TES to SK tes. The Virginia ITAD facility inauguration was the first official event under the new name. SK tes aims to continue its growth as the world's leading e-waste company through this milestone.
TES is an acronym derived from "Total Environment Solution," representing the company's comprehensive environmental solutions. Incorporating the "SK" brand into its name as a member of the SK Group is expected to enhance its global standing and competitiveness further.
Jae-Yeon Cho, Head of SK ecoplant's Environment BU, stated, "We will prioritize the North American market, which accounts for 40% of the global data center ITAD volume, by creating synergies between the Las Vegas facility completed last year and the newly established Virginia ITAD facility. We aim to lead the global ITAD market with our perfect information security technology, safety-related international standard certifications, and comprehensive ITAD capabilities."
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