-- New FRA-1 Data Center 100% Pre-Leased --
BOSTON, June 8, 2020 /PRNewswire/ -- Iron Mountain Incorporated (NYSE: IRM), the storage and information management services company, today announced that it has signed a 27 megawatt data center lease with a U.S.-based Fortune 100 customer in Frankfurt, Germany, at its new FRA-1 data center. As part of the agreement, the customer will lease the entire 27 megawatt turn-key data center, with the initial 9 megawatts of power capacity to be taken upon lease commencement. The customer is committed to scaling to the full 27 megawatts of power capacity within five years. The lease is expected to commence in the second quarter of 2021, and has an initial term of ten years, with renewal options.
Iron Mountain pre-leased approximately 280,000 square feet, or 100% of its FRA-1 data center that is currently under construction. FRA-1 is being developed in three phases, of 9 megawatts per phase, with Phase 1 expected to be complete in the second quarter of 2021. Full build-out of the data center is expected in the second quarter of 2022. The Frankfurt data center is designed with state of the art specifications, offering dark fiber availability, allowing for increased interconnection options and low latency connectivity.
With the execution of the hyperscale lease in Frankfurt and the strength in first-quarter leasing activity, Iron Mountain now expects to significantly exceed its previous leasing target for new and expansion signings of 15 to 20 megawatts for full-year 2020. The company anticipates providing an update on its full-year leasing target on its second-quarter earnings conference call.
"We're very pleased to have executed this pre-lease at our new FRA-1 data center," said Mark Kidd, Executive Vice President and General Manager of Data Centers at Iron Mountain. "As we continue to focus on building out our platform with ground-up developments in Frankfurt and Northern Virginia, and expansions at existing data centers in Amsterdam, London, New Jersey, Northern Virginia, and Singapore, we will continue to identify the right hyperscale opportunities that enhance our strong core enterprise retail colocation ecosystem."
Frankfurt is a top global data center market and the second largest in the European FLAP region. The market is home to one of the world's largest internet exchanges, DE-CIX, which is a world-class peering exchange with hundreds of large networks available for customers.
"We're excited for the opportunity to serve as a strategic partner to an important Fortune 100 company," said Eric Boonstra, Vice President & GM Western Europe, Data Centers at Iron Mountain. "We are building upon our already strong European data center offerings to provide even more flexible, scalable options for customers now and into the future."
In addition to Frankfurt, Iron Mountain's European footprint includes data center campuses in Amsterdam and London. Strategically located in the heart of the Amsterdam region, one of the world's largest network ecosystems, Iron Mountain's AMS-1 data center campus now has 12 megawatts of capacity, with the ability to expand its campus footprint by more than 20 incremental megawatts. IRM is currently expanding the campus, adding 1.7 megawatts of capacity, of which 18% is pre-leased, reflecting strong demand from both new and existing data center customers. One of the most highly connected campuses in the market, AMS-1 offers customers easy access to 50+ on-site carriers and AMS-IX and NL-IX points of presence, providing low latency and carrier neutral connectivity options for custom solutions.
Located in the Slough Trading Estate, LON-1 is a highly-secure, purpose-built data center, with its existing capacity 74% leased, including to one of the largest banking institutions in the world. Iron Mountain is building out an additional 2.0 megawatt data hall in LON-1 to support robust demand, with an additional 2.0 megawatts of capacity held for future development at that site. In the fourth quarter of 2019, Iron Mountain entered into an agreement for a second site in Slough which will expand its presence in the important London market by adding an incremental 25 megawatts of capacity for future development. LON-2 is adjacent to the existing footprint at LON-1, and provides capacity to meet the demand for larger requirements in a very desirable market with low latency network connectivity.
Additional highlights from the Iron Mountain European data center footprint include:
- Support for multiple use cases: hybrid-IT colocation, local production IT, local/regional business continuity/disaster recovery and consolidation/migration in all campuses.
- Efficient hybrid-IT enablement: centralized access to hundreds of customers, clouds, carriers, and other IT services providers, making hybrid IT efficient, cost-effective, and secure.
- Network density: carrier-neutral campuses working with more than 63 native network providers and internet exchanges such as LINX, AMS-IX and NL-IX, access to diverse meet-me rooms, and the ability to connect to multiple public-cloud on-ramps.
- Energy efficiency: powered by 100% renewable energy.
- Operational excellence: 100% uptime SLAs.
- Industry-leading compliance and security.
Iron Mountain's global data center platform consists of 14 operational facilities across 13 markets and three continents. Including leasable capacity and land and buildings held for future development, Iron Mountain's data center platform can support more than 350 megawatts of IT capacity at full build-out. For more information on Iron Mountain Data Centers, visit https://www.ironmountain.com/digital-transformation/data-centers.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across more than 1,480 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working. Visit www.ironmountain.com for more information.
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Forward Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws and is subject to the safe-harbor created by such Act. Forward-looking statements include, but are not, limited to statements concerning the commencement of the lease, the timeline for construction and expected leasing targets for 2020. When we use words such as "believes," "expects," "anticipates," "estimates" or similar expressions, we are making forward-looking statements. Although we believe that our forward looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. Although we believe that our forward looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations.
These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors.Important factors that could cause actual results to differ from expectations include (i) the impact of the COVID-19 outbreak on our business, operations and financial condition, (ii) our ability to remain qualified for taxation as a real estate investment trust for U.S. federal income tax purposes; (iii) the adoption of alternative technologies and shifts by our customers to storage of data through non-paper based technologies; (iv) changes in customer preferences and demand for our storage and information management services; (v) the cost and our ability to comply with laws, regulations and customer demands relating to data security and privacy issues, as well as fire and safety standards; (vi) our ability or inability to execute our strategic growth plan, expand internationally, complete acquisitions on satisfactory terms, and to integrate acquired companies efficiently; (vii) changes in the amount of our growth and recurring capital expenditures and our ability to raise capital and invest according to plan; (viii) the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our customers' information or our internal records or IT systems and the impact of such incidents on our reputation and ability to compete; (ix) our ability to execute on Project Summit and the potential impacts of Project Summit on our ability to retain and recruit employees and execute on our strategy (x) changes in the price for our storage and information management services relative to the cost of providing such storage and information management services; (xi) changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate; (xii) the impact of executing on our growth strategy through joint ventures; (xii) our ability to comply with our existing debt obligations and restrictions in our debt instruments or to obtain additional financing to meet our working capital needs; (xiv) the impact of service interruptions or equipment damage and the cost of power on our data center operations; (xv) changes in the cost of our debt; (xvi) the impact of alternative, more attractive investments on dividends; (xvii) the cost or potential liabilities associated with real estate necessary for our business; (xviii) the performance of business partners upon whom we depend for technical assistance or management expertise; (xix) other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and (xx) other risks described more fully in our filings with the Securities and Exchange Commission, including under the caption "Risk Factors" in our periodic reports or incorporated therein. You should not rely upon forward-looking statements except as statements of our present intentions and of our present expectations, which may or may not occur. Except as required by law, we undertake no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Iron Mountain Incorporated