Microsoft: Cutting Waste with Circular Data Centre Design

Microsoft is reshaping how data centres manage waste, linking circular design with broader efforts to reduce single-use plastics and improve environmental outcomes across its infrastructure.

With global plastic waste exceeding 460 million tonnes, according to WWF, Microsoft is working to limit its own footprint by removing single-use plastics and embedding reuse across its cloud operations. This approach extends from product packaging through to the design and lifecycle of data centre hardware.

At the end of 2025, Microsoft reported it had removed nearly all single-use plastic from its primary product packaging, reducing the figure to 0.07% across its global portfolio. At the same time, it is applying similar principles to data centres, where hardware turnover and material use are key sustainability challenges.

Circular data centres in practice

Microsoft’s strategy centres on a circular economy model – a system where materials are kept in use for as long as possible through reuse, repair and recycling. Within its data centres, this begins with how servers and components are designed.

The company prioritises durability, modularity and repairability, allowing equipment to remain in service for longer. When hardware reaches the end of its primary use, it is processed through a network of circular centres located in regions including Amsterdam, Dublin and the US.

At these facilities, decommissioned servers are assessed, with usable components tested, refurbished and recertified for redeployment. Parts that cannot be reused internally are redistributed to third parties or educational organisations, while remaining materials are directed into recycling streams.

This system is already delivering measurable results. Microsoft has achieved a 90.9% reuse and recycling rate for cloud hardware components in 2024, exceeding its 90% target. More than 3.2 million components are reused in the same year, while 85% of demand for obsolete spare parts is met through internally sourced inventory.

Nida Ahmed, Sustainability Product Manager at Xbox, Microsoft, highlights how accessibility plays a role in sustainability adoption. “By meeting people where they are and focusing on practical entry points, sustainability has become more approachable and easier to act on,” she says.

“I care deeply about building things that are thoughtful, responsible and resilient.”

Reducing waste and improving operations

Waste reduction is closely tied to efficiency and supply chain management. By reusing components, Microsoft reduces the need for new manufacturing, lowering both material demand and associated emissions.

Trista Brown, Director of Zero Waste Program; CO+I Datacenter Operations at Microsoft, links this approach to practical implementation. “Most people are very supportive of sustainability, but they’re also very busy,” she says.

“We can improve sustainability outcomes by removing complexity and making it simple to default to the sustainable option.”

Trista’s perspective aligns with the operational realities of large-scale data centres, where standardised processes are essential for maintaining uptime while introducing new sustainability measures.

The “reduce, reuse, recover” model also strengthens supply chains by ensuring critical components remain available, even as hardware evolves. This is particularly relevant as demand for compute capacity increases, placing pressure on manufacturing and logistics.

Extending data centre impact through AI

Beyond infrastructure, Microsoft is applying data centre capabilities to environmental monitoring and analysis. AI workloads running in these facilities support projects that track ecosystems and respond to environmental risks.

In California, ALERTCalifornia uses connected cameras and sensors to identify wildfire risks in real time. In rainforest regions, projects such as Project SPARROW combine solar-powered monitoring with AI to track wildlife activity. These initiatives rely on data processing capacity to analyse large volumes of information quickly.

Microsoft is also working with the United Nations Framework Convention on Climate Change and EY on the Climate Data Hub, a platform designed to consolidate climate data from nearly 200 countries. Built on cloud-based tools, the system improves data accessibility and supports decision-making.

Melanie Nakagawa, Chief Sustainability Officer at Microsoft, describes the broader approach. “I want to recognise a recent milestone on our journey to be zero waste that was built on years of effort and countless teams' dedication,” she says.

“By the end of 2025, we eliminated nearly all single-use plastic from Microsoft primary product packaging, reducing single-use plastics to 0.07% across our global portfolio.”

Melanie also outlines the range of initiatives connected to this effort. “Protecting the planet has never been about one silver bullet answer but a variety of solutions of all shapes and sizes,” she writes.

“I see this every day in the work happening across Microsoft and with our partners, from using AI to help find and remove plastic fishing nets from the ocean, to supporting tools that detect wildfires faster, to working with UN Climate Change and EY on the Climate Data Hub so climate data from 198 countries can be easier to understand and act on.”