Leather processing is notorious for generating substantial amounts of polluting and putrescible organic waste, usually ending up in landfills or incineration. This study aimed to assess the potential of biogas production, waste treatment efficiency, and energy and cost savings benefits when scaling up the anaerobic co-digestion of leather processing wastes. The study focused on three waste types: tannery primary sludge (TPS), leather fleshings waste (LFW), and tannery wastewater (TWW). Semi-continuous anaerobic digestion experiments were conducted using three bench-scale reactors (R1-R3) over five phases; phases I and II were the startup and stabilization. In phase III, with an organic loading rate (OLR) of 0.6 kgVS/m³/d, the R2 reactor achieved an average of 0.323 m³ methane/kgVS added/day. This performance surpassed the other reactors by 39.14% (R1) and 41.29% (R3). In phases IV and V, using TWW instead of tap water for substrate dilution at different ratios (25–100%) reduced methane yield by 3.32–11.73% compared to the reactor that used tap water. The study further revealed that a medium-sized anaerobic reactor treating tannery wastes could reduce electric energy consumption by 3.64% and thermal energy consumption by 5.20%. This showcases the energy-saving benefits of co-digesting tannery wastes rather than disposing them in landfills. Using tannery wastes instead of traditional disposal methods resulted in approximately 94.68% savings in electric consumption and 45.03% in thermal energy consumption. This study offers a promising approach for sustainable leather waste treatment, biogas production, and considerable energy and cost savings compared to conventional disposal methods like landfilling.