You are the data center Where hyperscale hardware goes to retire: Ars visits a very big ITAD site Watching memory DIMMs get sorted like Wonka children inside SK TES' facility. Kevin Purdy – May 26, 2025 7:30 am | 9 A worker at SK TES' Fredericksburg, Va. facility, processing incoming gear. Credit: SK TES A worker at SK TES' Fredericksburg, Va. facility, processing incoming gear. Credit: SK TES Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only   Learn more "The biggest risk is data escape." 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, 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 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 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. 5,632 HDDs at once Beyond these folks are some of the more than 5,000 HDD wiping bays (black, with all the wires running to them) at the SK TES facility. Credit: SK TES Beyond these folks are some of the more than 5,000 HDD wiping bays (black, with all the wires running to them) at the SK TES facility. Credit: SK TES That includes buyers of reconditioned hard drives, and boy, are there a lot of drives moving through this site. Once a drive is verified through its SMART data to be worth grading and refurbishing, it's put into one of more than two dozen wiping bays, each holding about 192 drives (with a special bay handling some M.2 and other non-HDD sizes). If the bays were completely full, 5,632 drives could be wiped concurrently. The month before I visited, the site had processed about 58,000 drives, according to Ingebretsen. There are also stacks and stacks of memory and CPUs in this non-retail corner of the site. I walked by one box labeled "SR1Y5" (i.e., Intel Xeon E5-2676 v3 chips), and he confirmed there were 3,600 units inside. The RoboFlex II. This baby weighs 35 pounds, has Good and Bad bins, and whips sticks around at remarkable speed. Credit: SimmTester The RoboFlex II. This baby weighs 35 pounds, has Good and Bad bins, and whips sticks around at remarkable speed. Credit: SimmTester Nearby, in the memory-testing section, I find the memory machine that will stick in my own memory the rest of my life: the RoboFlex-II Handler. You drop RAM DIMMs or SODIMMs into one of its two bays, and it tests the pins on each stick. Each stick is rated "Good" or "Bad" and kicked in the appropriate direction by a 90-PSI air blast. I asked the workers at this station if they think about the entirely relevant scene from Willy Wonka & the Chocolate Factory. They do, and quite often. Where does all this stuff go? SK TES sells retail devices like laptops, desktops, and mobile devices through its "Stock Must Go" brand on eBay and elsewhere. Chips and memory are typically bought up by laboratories, crypto miners, data centers, and a lot of high-volume overseas customers. There are steady enterprise customers for the drives, usually putting them back into datacenters. It's something like $2.5 million in sales each month, an SK TES representative told me. Big data, and only getting bigger The other business—the thing that makes ITAD "disposition" instead of just "refurbishing"—is dismantling and handing off devices for shredding. The Financial Times has reported that Amazon and Microsoft have 100 percent data shredding policies, with Google also shredding much of its drive turnover. The US National Renewable Energy Laboratory estimated in 2022 that by 2025, roughly 50 million end-of-life data center drives would be shredded every year. ITAD businesses like SK TES make the pitch that companies can create revenue to reinvest in operations through offering gear for refurbishment. SK TES representatives told me that most of the Virginia site's customers are "focused on reuse," while "a small portion" of equipment is shredded and sent off-site to be recycled. The site, built on the guts of a mattress factory, was put up specifically to handle the high volumes of server racks and HDDs coming in from data centers. It has a staff of 165, though it fluctuates a bit between big server hauls and downtime. The full-fledged site had been open one year when I visited. The biggest challenge, Ingebretsen told me, was getting power everywhere it needed to go inside the facility as volume fluctuated and needs expanded. Data centers are massive and growing, to the point of creating entire sub-industries that employ dozens of people to handle their tech turnover. The Northern Virginia Technology Council industry group puts this region's data center growth at 500 percent between 2015 and 2023, and it continues, though some pushback is happening. Many data centers were accessed to allow me to navigate to SK TES's site via Apple Maps and write this post, and for you to read it. It reminds me of the adage—made popular by the CEO of GPS maker TomTom—that you are not stuck in traffic, you are the traffic. After my tour, I got my phone back from security, talked a bit with Ingebretsen, then headed out to my car. I spent a few minutes jotting down the most notable things I'd seen inside, then looked up and out the windshield. There was a black tarp wrapped around a chain-link fence of the lot next door, with logos announcing the construction of a new data center. Data centers are everywhere—and nowhere in particular. Kevin Purdy Senior Technology Reporter Kevin Purdy Senior Technology Reporter Kevin is a senior technology reporter at Ars Technica, covering open-source software, PC gaming, home automation, repairability, e-bikes, and tech history. He has previously worked at Lifehacker, Wirecutter, iFixit, and Carbon Switch. 9 Comments