REDEFINING DATA CENTER LIFECYCLE: INNOVATION, EFFICIENCY, AND STRATEGIC DECOMMISSIONING
The next decade will see significant activity in data center decommissioning and repurposing in the U.S., influenced by the rapid evolution of technology, sustainability goals, and growing demand for power-efficient facilities. The context below provides insights into what is driving this trend.
1. Growth of New, Efficient Facilities
New data centers optimized for energy efficiency, AI workloads, and renewable energy integration are being built, leading to older, less efficient facilities being retired. The transition to hyperscale data centers is expected to dominate, with approximately 70% of new builds projected by 2030.
Sources: Goldman Sachs McKinsey & Company
2. Increased Energy Demand
In 2023, U.S. data center capacity reached approximately 19 GW, with forecasts indicating expansion to 35 GW by 2030. This growth coincides with the ongoing decommissioning of smaller, outdated facilities as hyperscale’s consolidate their infrastructure.
Sources: McKinsey & Company Carbon Credits
3. Market Trends and Challenges
Data center energy consumption is predicted to double in the U.S. by 2030, reaching upwards of 9% of the nation’s electricity load, driven primarily by AI and machine learning applications. This growth is prompting the closure or upgrade of facilities unable to support these energy-intensive operations.
Sources: Goldman Sachs Carbon Credits
4. Environmental and Regulatory Pressures
Decommissioning aligns with corporate sustainability goals and the push for 24/7 carbon-free energy use by 2030. Facilities unable to meet these standards are likely to be phased out.
Sources: McKinsey & Company
Final Thoughts
Retiring older data centers is critical to meeting efficiency, capacity, and environmental targets amid escalating power demands. At LEL Decom, we surgically dismantle your data center infrastructure without disruption to existing tenants and maximize the value of your critical assets. If you need any Decommissioning services don’t hesitate to contact LEL Decom.
