Plumes of black smoke were spotted coming from a main sorting hub at the centre at Dobson House, Fengate.
It is understood the incident happened at shortly before 10.50am today. (September 26).
It is understood the incident has been caused by a battery within the rubbish.
The centre has been temporarily closed while the fire crews deal with the incident.
A spokesperson for Cambridgeshire fire service said: "This morning crews were called to a fire at a recycling centre on Fengate, Peterborough at around 10.30am.
"Crews from Stanground, Dogsthorpe and the north roaming fire engine are in attendance.
“The incident is ongoing, however, firefighters are making good progress.”
