BusinessJun 17, 2026
Wall Street Is Finding Treasure in America’s Trash Thanks To AI and Automation
Rhea Lobo
The trash talk is finally paying off. Public waste companies are investing billions to make recycling smarter and more efficient through AI-powered sorting and automation. With the EPA estimating up to $43B in recycling infrastructure upgrades will be needed by 2030, the industry’s next growth phase is just beginning.
Unlocking opportunity: Waste Management, North America’s largest waste and recycling company, is ramping up on its automation bets. The company recently opened a $90M AI-powered recycling facility and has committed $1.4B to building and upgrading recycling infrastructure since 2022. Those investments are expected to generate an additional $290M in annual EBITDA starting this year.
AI is becoming an industry-wide strategy. Republic Services upgraded its Peabody Recycling Center with AI-powered sorting technology, while Casella Waste Systems continues expanding its recycling network through acquisitions. During Q1, Waste Connections also highlighted AI-driven cost savings and recovering recycled commodity prices as key tailwinds.
The regulatory kicker: Automation builds the floor, but policy could raise the ceiling. The waste industry spent a record $6.5M lobbying Washington in 2025, more than double its 2019 total, with recycling incentives high on the agenda. The proposed Circular Act would offer tax credits for recycling equipment and software. Oppenheimer’s Noah Kaye says automation is bringing “intelligence and control” to the industry, while TD Cowen’s James Schumm believes supportive regulation would speed the payoff. Goes to show that the dirtiest businesses can produce the cleanest margins.
