Data centers and AI team up to generate ITAD ‘growth engine’

tinue to be the growth engine.”
Mikkelsen emphasized the economic rationale behind repurposing data centers, noting that the availability of lower-cost parts within the country allows for frequent upgrades and has proven to be reliable. This business segment contributed about 20% of Sims Lifecycle Services’ total financial results, according to company leaders.
Iron Mountain, a key player in the ITAD sector, also saw significant revenue growth in 2024 through its ITAD operations, known as Asset Lifecycle Management. The company reported a 119% revenue increase over 2023, with organic growth from new business accounting for about 30% of this increase.
Iron Mountain CEO William Meaney highlighted the success of Regency Technologies, as well as recent acquisitions such as Wisetek and APCD, an Australian ITAD firm acquired in 2024. These acquisitions contributed to the company’s revenue growth, with Regency alone bringing in $137.0 million in revenue.
During an earnings call on February 13, Chief Financial Officer Barry Hytinen indicated that the revenue increase was primarily driven by higher business volume rather than fluctuations in component pricing. While some components experienced slight price fluctuations, overall pricing remained relatively stable, with most of the growth attributed to volume-driven factors.
Iron Mountain’s fourth-quarter asset lifecycle management revenue reached $112 million, up $60 million from the same period in 2023. Regency, Wisetek, and APCD contributed significant portions to this revenue increase, with Regency bringing in $34 million during the fourth quarter of 2024.
There were no mentions of a recent criminal case involving a former Wisetek employee in company discussions. Despite this, Meaney highlighted Iron Mountain’s continued partnerships with government clients, noting recent agreements with a state government and a global healthcare company to manage the lifecycle of their IT assets. Furthermore, Iron Mountain secured its first Canadian ITAD contract, providing services to an insurance company.
Meaney expressed optimism regarding potential opportunities for Iron Mountain, particularly in light of the Department of Government Efficiency project initiated under the Trump administration. With Elon Musk drawing attention to inefficiencies in the federal government, Meaney cited Iron Mountain’s Pennsylvania underground records storage site as an example. This highlights potential growth avenues for the company.
Overall, both Sims Lifecycle Services and Iron Mountain have experienced significant revenue growth in their ITAD operations, driven by factors such as data center decommissioning and strategic acquisitions. These successes position both companies as key players in the evolving landscape of IT asset disposition.