This is not just limited to "cloud" services. Hosting companies recycle hard drives all the time. If you're lucky, they'll wipe it after they pull it out of your machine. If you're not, they won't.
It all comes down to what kind of recycling policies they have for old hardware. Ideally, all drives should be wiped and then stress-tested to avoid the problem where you eventually wind up with nothing but bad disks in the recycle loop. After all, good disks stay in production and thus exit the loop, whereas bad disks fail and come right back.
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This is not just limited to "cloud" services. Hosting companies recycle hard drives all the time. If you're lucky, they'll wipe it after they pull it out of your machine. If you're not, they won't.
It all comes down to what kind of recycling policies they have for old hardware. Ideally, all drives should be wiped and then stress-tested to avoid the problem where you eventually wind up with nothing but bad disks in the recycle loop. After all, good disks stay in production and thus exit the loop, whereas bad disks fail and come right back.