GS SUSTAIN: NOTES FROM THE ROAD: Sustainability discussions remain focused on Reliability & Resilience

研报英文原文证据摘录

GS SUSTAIN: NOTES FROM THE ROAD: Sustainability discussions remain focused on Reliability & Resilience

Goldman Sachs GS SUSTAIN: Notes From the Road

(4) Circularity gaining more recognition as a driver of supply chain resiliency and value recovery

Security of supply continues to be a greater focus for companies dealing with supply

chain, power and water uncertainty. As companies grapple with a more uncertain

outlook for the cost of raw materials and critical components, there is growing

acknowledgment of the value of secure supply chains, particularly in sectors exposed to

ongoing geopolitical conflict, tariffs or export restrictions. Digital infrastructure is a key

sector where circularity is evolving from a compliance-driven cost center into a strategic

mechanism for supply chain resiliency, risk mitigation, and financial value recovery.

NVIDIA H100 GPU rental rates appreciated 40% in 1Q26 and memory has quadrupled

in price over the past 3-4 quarters, incentivizing greater reuse of existing components

before end-of-life.

Hyperscalers are fully invested in data center circularity. Hyperscalers are

increasingly prioritizing the repairability, disassembly, and reuse of data center

components to mitigate bottlenecks in the critical minerals supply chain, which is heavily

concentrated in China1. Microsoft has established seven Circular Centers globally since

2020 which manage direct recycling and reuse, and attaches strict financial metrics to

these programs to prove their business value. While data centers were already

characterized as operating more circularly than most other electronics material streams,

industry expectations are for reuse to gain share vs. recycling over time as more second

and third-life applications for chips become established.