Iron Mountain Incorporated serves more than 240,000 customers in 61 countries, including approximately 95% of the Fortune 1000. It provides services spanning the physical and digital worlds, addressing information management, digital transformation, information security, data center, and asset lifecycle management needs. Founded in 1951, the company is incorporated in Delaware and based in Portsmouth, New Hampshire.
Iron Mountain Targets 20% Growth on Data Centers and Cross-Sell
Iron Mountain expects its combined growth portfolio to expand by more than 20% over the long term, CFO Barry Hytinen said at Goldman Sachs' 2026 Communacopia + Technology Conference, citing data centers, asset lifecycle management and digital solutions that can be cross-sold to its 245,000 business customers. The data center business is expected to generate a little more than $1 billion in revenue this year, and Iron Mountain has already signed contracts for facilities that would add roughly 40% to that business once built and energized. The company leased 110 megawatts year to date through July, exceeding its initial 100-megawatt target by a meaningful amount, and has 325 megawatts scheduled to energize over the next 18 to 24 months, all of which remained unleased at the time of the discussion, primarily in Tier 1 markets including Virginia, Europe and India. The ALM business is projected to reach approximately $1 billion in revenue this year, up from about $30 million in 2021, against a total addressable market Hytinen estimated at $35 billion, while digital solutions now generate more than $600 million in annual revenue, up from less than $200 million five or six years ago, and grew 20% in the most recent quarter. Data centers generate EBITDA margins in the low-50% range, and Hytinen said cash available for discretionary uses should increase by hundreds of millions of dollars annually over the next several years, supporting continued dividend growth under a payout target in the low-60% range of adjusted funds from operations.
IRM · Demand · Positive Iron Mountain expects its data center, ALM and digital solutions portfolio to grow over 20% long term, with signed data center contracts adding ~40% capacity and 110 MW leased YTD.
Iron Mountain Swings to Profit as Data Center Growth Surges
Iron Mountain reported second-quarter revenue of $2.03 billion, up 18.5% from a year earlier, and swung to a net income of $106 million from a $43 million loss, prompting management to raise full-year guidance. The company's data center, digital, and asset lifecycle management businesses grew more than 50% year over year, with data center leasing hitting 110 megawatts year to date, including 75 megawatts signed in July alone. Service revenue jumped 27% to $894 million, while storage rental revenue grew 12% to $1.14 billion. Adjusted EBITDA rose 15.7% to $727 million, and AFFO per share increased 16% to $1.44. However, adjusted EBITDA margin slipped 90 basis points to 35.8%, long-term debt climbed to $17.13 billion, and the company's total deficit widened to $955 million, reflecting the capital-intensive buildout.
Iron Mountain's Data Center Revenue Surges 47% in Q1 2026
Iron Mountain reported a 47.1% year-over-year jump in data center revenues to $254.7 million in the first quarter of 2026, driving total company revenue up 21.6% to $1.94 billion. The data center operating portfolio expanded to 507.2 megawatts and was 97.2% leased, while the segment's adjusted EBITDA margin held at 52.1%. Consolidated storage rental revenues rose 15.5%, and adjusted funds from operations climbed 22.3% to $1.43 per share. Management raised its full-year 2026 outlook, though the company continues to face headwinds from declining demand for paper records, a net debt load of approximately $17.0 billion, and rising interest expense.
Barclays Raises Iron Mountain Price Target to $143
Barclays raised its price target on Iron Mountain to $143 from $127 while maintaining an Overweight rating. Analyst Brendan Lynch cited higher growth expectations driven by ongoing hyperscale demand and accelerating enterprise AI demand, leading to target increases across the communications infrastructure REIT group. Separately, Iron Mountain announced a proposed $1 billion senior notes offering due 2035, with proceeds intended to repay revolver borrowings and for general corporate purposes. Truist also raised its target on the stock to $140 from $130 after strong first-quarter results, noting data center lease trends as a key driver.
Real estate stocks eke out gains in June, post solid returns in four months of H1 2026
Real estate stocks closed the first half of 2026 with gains in four of the six months, eking out a positive June despite a hawkish Federal Reserve. The S&P 500 Real Estate Index Sector rose 0.23% month-over-month to 279.69 points, while the State Street Real Estate Select Sector SPDR ETF added 0.09% to $44.03. The Dow Jones REIT Indx Equity REIT Total Return Index advanced 1.48%, and the FTSE Nareit All Equity REITs index gained 0.81%. Office REITs and Health Care REITs were the biggest beneficiaries among subsectors, but losses in Specialized REITs and Industrial REITs weighed on overall returns. The benchmark 10-Year Treasury yield ended flat at 4.47%, easing fiscal concerns that had driven borrowing costs higher in May. Among large-cap stocks, data center REITs led weekly losers, with Iron Mountain down 10.61%, Digital Realty Trust off 9.95%, and Equinix falling 7.87%, reflecting public anxiety over electricity grid strains from AI data centers. American Healthcare REIT topped the gainers, up 8.09%, after Citi upgraded the stock to Buy. In midcaps, Compass rose 14.21% after management met with Oppenheimer, which maintained a Buy rating, while data center REIT Fermi fell 8.41%. Small-cap decliners were led by mortgage REITs Redwood Trust and Apollo Commercial Real Estate Finance, the latter downgraded by BTIG on expected book value erosion from asset sales. Newly appointed Fed Chair Kevin Warsh's hawkish comments fueled speculation that rate hikes could return, pressuring mortgage REITs near-term but potentially benefiting them from wider spreads over time.
Iron Mountain Issues US$1.50 Billion of 6.250% Senior Notes Due 2035
Iron Mountain completed a private offering of US$1.50 billion of 6.250% Senior Notes due 2035, primarily to refinance revolving credit facility borrowings and for general corporate purposes. The unsecured, senior, and initially US-subsidiary-guaranteed debt adds long-term funding flexibility while embedding covenants that could influence future capital allocation and balance sheet management. The company also recently affirmed its US$0.864 quarterly dividend, keeping the income case intact but sharpening focus on whether future cash flows can cover rising interest costs and ongoing investments in data centers and digital growth.
Zacks Highlights Recruit, Iron Mountain, Verisk in Business Information Industry
Zacks Equity Research has identified Recruit Holdings, Iron Mountain, and Verisk Analytics as stocks to watch in the business information services industry. The industry is benefiting from increased technology adoption and demand for risk mitigation, cost reduction, and productivity improvement solutions. Recruit Holdings, with a Zacks Rank #1 (Strong Buy), saw its fiscal 2026 EPS estimate rise 3.9% to 53 cents, driven by its HR Technology and Marketing Matching Technologies segments. Iron Mountain, rated #3 (Hold), reported a 21.6% revenue increase to $1.94 billion in the first quarter of 2026, with its data center business revenues surging 47.1% to $254.7 million. Verisk Analytics, also a #3 (Hold), is transitioning to a subscription-driven model with over 80% of 2025 revenues from subscriptions, and its 2026 EPS estimate edged up to $7.63.
6098.JP · Capital · Positive Fiscal 2026 EPS estimate rose 3.9% to 53 cents, driven by HR Technology and Marketing Matching Technologies segments.
IRM · Demand · Positive Data center business revenues surged 47.1% to $254.7 million, indicating strong end-customer demand.
VRSK · Technology · Positive Transitioning to a subscription-driven model with over 80% of 2025 revenues from subscriptions, a strategic product shift.
Data Center Colocation Market to Reach USD 298.78 Billion by 2035
The global data center colocation market is projected to grow from USD 86.24 billion in 2025 to USD 298.78 billion by 2035, at a compound annual growth rate of 13.19 percent, according to a report by SNS Insider. North America held the largest share in 2025 at approximately 36 to 39 percent of global revenues, with the United States alone valued at about USD 26.69 billion and expected to reach USD 92.46 billion by 2035. The retail colocation segment dominated with roughly 70 percent market share, while wholesale colocation is the fastest-growing segment driven by AI computing's power density requirements. Tier 3 facilities led with about 58 percent share, and IT and telecom accounted for approximately 29 percent of end-use revenue. Key players include Equinix, Digital Realty, CyrusOne, Iron Mountain, and NTT Global Data Centers.
EQIX · Demand · Positive Market growth forecast driven by AI and cloud demand benefits colocation providers like Equinix.
IRM · Demand · Positive Market growth forecast driven by AI and cloud demand benefits colocation providers like Iron Mountain.
NTT Global Data Centers · Demand · Positive Market growth forecast driven by AI and cloud demand benefits colocation providers like NTT Global Data Centers.
Iron Mountain's AI-Driven Growth and 3% Yield Attract Investor Attention
Iron Mountain, a real estate investment trust serving over 95% of Fortune 500 companies and more than 240,000 businesses, is seeing accelerating revenue growth driven by the artificial intelligence boom. The company reported a 21.6% year-over-year revenue increase in the first quarter, up from 16.6% in the fourth quarter and 12.6% in the third quarter, while maintaining a 98% customer retention rate. It was recently named a 2026 Google Cloud Partner of the Year in the Business Applications category, highlighting its relationship with long-term customer Alphabet. Iron Mountain offers a dividend yield of nearly 3% and raised its quarterly dividend by 10% year-over-year in November 2025, from $0.785 per share to $0.864 per share. The stock has more than doubled over the past five years and continues to outperform the S&P 500 year to date.
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