IT lifecycle solution company TES has announced a plan to build a new Virginia-based IT asset disposition and disposal (ITAD) facility.

The company says it has a "significant" multimillion-dollar investment, part of which will go towards a TES facility in Virginia. The site will cover 128,000 sq ft (11,900 sqm) and will cater exclusively to ITAD data center asset processing, handling all aspects of the data center retirement process from decommissioning, to testing or repair, to disposition.

The Singapore-based company has also hired a team of experts in the hyperscale data center sector to handle this work, and is expected to grow to 50 people by the end of the year.

The company did not say where the facility would be, although it has a site already listed on its website in Fredericksburg, Virginia.

The company's VP of hyperscale remarketing, Keith Layton, said that the investment has been motivated by the current state of the IT reseller market, saying he has "never experienced the volatility that we have today."

By growing the company's operations, TES will be able to effectively service the US hyperscale market as well as Edge, enterprise, and other customers.

Eric Ingebretsen, TES' CCO, said: "The goal of this investment is to enable the processing and dispositioning of data center assets at the hyperscale level, which drives a fundamentally different approach. Processing 5,000 drives at a time is one thing; being able to process 100,000 drives at a time is something entirely different."

TES was acquired by South Korean construction firm SK ecoplant in February 2022 for $1bn from Navis Capital Partners in order to help SK ecoplant improve its position as a global sustainable IT lifecycle services market.

At the time of the acquisition, TES had over 40 recycling centers worldwide. Earlier this year, the company announced a new US-based facility in Las Vegas, bringing its overall footprint to 43 locations.

The Vegas investment brought TES's investment to $10m in ITAD infrastructure in North America. What this number has now reached is unknown.