I took a customers money and now I don't want to provide the service because it will cost me too much and it will eat into my profits ?
As others have said, if this is contractual issue you'll need to renegotiate the contract - and (presumably) give some money back (like that will fly with the executives since the revenue has already been reported)... It makes no difference whether there are acceptable solutions that do not involve physically destroying the disk.
That's what the contract stipulated. Like it or lump it, that's what you signed up for when taking the money.
Why should I as tax payer allow you to make more profits for less service ?