Improving on the open-loop reverse supply chain for data centre servers - The environmental and financial aspects of data centre server disposal

Abstract

Recovery of value and materials present in waste electrical and electronic equipment (WEEE) is critical to prevent environmental damage, prevent depletion of resources and use energy efficiently. In returning the materials back to a forward supply chain, often a closed-loop supply chain is preferred over an open-loop supply chain. In a closed-loop supply chain new production is substituted with recovery of old equipment, recovering maximum economic and environmental value. For data centre servers however, this is not possible as servers have very short lifecycles and become technologically obsolete quickly.

This thesis investigates how to improve on the current open-loop reverse supply chain for data centre servers, to come to a more environmentally friendly, resource efficient and economically viable reverse supply chain for data centre servers. To perform the study, literature on business to business (B2B) WEEE, open-loop supply chains and green IT was used to create a conceptual framework. The supply chain from production, use, through to disposal was considered. A qualitative case study was performed, collecting qualitative data by doing eighteen different interviews with actors in the Amsterdam Metropolitan Area representing all relevant actors. Data was coded and analysed using the theoretical concepts to create categories for qualitative content analysis.

In the disposing of data centre servers four relevant scenarios can be identified. Dismantling of servers is preferred over shredding of servers, before materials are sorted and brought to shredding actors. In the reuse spectrum the crux is whether the servers are reused regionally or exported for reuse. With exporting for reuse valuable materials leave the region, while it cannot be made sure these resources can be recovered at the end of their next lifecycle. Regional reuse on the other hand is more environmentally friendly, but is very difficult to accomplish, as servers can be freely traded. It is common that multiple brokers have had ownership over the server before it ends up at the next end-user, making it impossible to retain control over the materials.

By informing actors on the possibilities of data destruction without losing value, servers users could be motivated through the financial incentive to dismantle servers instead of shredding them. For reusing servers, a new business model is needed which guarantees servers stay in the region and are recycled at the end of their second life. To be able to assess whether a server should be recycled or reused, more research is needed.