Iron Mountain Incorporated

Investments in Datacenter

• Data Center Revenue Growth

  • In 2024, Iron Mountain achieved a 25% increase in Data Center revenue, reaching $620 million.
  • Fourth quarter Data Center revenue grew by 24%, amounting to $170 million.
  • Strong organic storage rental growth of 27% contributed to this performance.

• Capacity Expansion

  • The company's total capacity now stands at nearly 1.3 gigawatts, having increased by 420 megawatts year-over-year (approximately 50% growth).
  • Notably, 94% of under-construction assets are already leased, highlighting high demand and revenue visibility.

• Future Projections

  • For 2025, Iron Mountain projects an additional 125 megawatts in leasing activity, marking a 25% annual increase from the previous year's guidance.
  • The pipeline for leasing in 2025 is robust, indicating the potential for strong future growth.

• Joint Ventures

  • A joint venture with Ooredoo, a telecom and data center company, will enhance Iron Mountain's footprint in the rapidly growing Middle East data center market.
  • This collaboration expands services into key regions, including Qatar, Kuwait, and Tunisia.

• Market Demand and Pricing Dynamics

  • Industry demand for data center services remains high, with a year-on-year expected revenue growth range of high 20s to 30%.
  • Average pricing per kilowatt increased by over 40% compared to the previous year, reflecting strong pricing discipline.

• Margin Improvements

  • The adjusted EBITDA for Data Centers reached $88 million in Q4 2024, a 51% increase, with a significant rise in margins due to improved pricing and operational efficiency.

Summary

Iron Mountain is significantly capitalizing on the growing demand for data center services, with impressive revenue growth, expansion of capacity, and successful strategic partnerships. The company’s strong leasing activity and robust projections for 2025 reinforce its position in the datacenter market.