U.S. Markets closed
  • S&P 500

    -31.53 (-0.81%)
  • Dow 30

    -143.99 (-0.46%)
  • Nasdaq

    -230.04 (-1.69%)
  • Russell 2000

    -43.81 (-1.93%)
  • Crude Oil

    -0.32 (-0.54%)
  • Gold

    +0.40 (+0.02%)
  • Silver

    -0.07 (-0.26%)

    +0.0004 (+0.0363%)
  • 10-Yr Bond

    -0.0310 (-2.14%)
  • Vix

    +0.75 (+3.21%)

    +0.0002 (+0.0140%)

    +0.0800 (+0.0750%)

    -998.01 (-2.01%)
  • CMC Crypto 200

    -13.39 (-1.36%)
  • FTSE 100

    +25.22 (+0.38%)
  • Nikkei 225

    +59.48 (+0.20%)

Iron Mountain (IRM) Signs Expansion Lease for Six MW in Phoenix

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Iron Mountain Incorporated IRM is seeing encouraging demand for its data-center space not only from new customers but also from existing tenants. Recently, the company signed a new pre-lease expansion for six megawatts (MW) with a U.S.-based Fortune 100 customer in Phoenix, AZ, at its AZP-2 data center. The lease is expected to commence in the third quarter of 2021.

This September, the company signed a 6-MW data-center lease deal with the customer at the facility. (Read more: Iron Mountain Preleases 6 Megawatt at Phoenix Data Center)

At the full build-out, the three-story facility will encompass more than 530,000 gross square feet and offer 48 MW of total IT capacity. There will be campus connectivity to the current 47 MW, operating at AZP-1 in Phoenix and AZS-1 in Scottsdale. Considering the land held for future development, the Phoenix campus, spanning 40 acres, has the capability to support more than 100 MW of IT load after being fully developed.

Per management, “we continue to see strong demand in the Phoenix market and are pleased that we are able to differentiate our solution offerings, including our compliance and sustainability certifications, which enable us to partner with prestigious global customers.”

Notably, with growth in cloud computing, Internet of Things and big data, and an increasing number of companies opting for third-party IT infrastructure; data-center REITs are witnessing a boom in Phoenix as well as worldwide. Furthermore, the estimated growth rates for the artificial intelligence, autonomous vehicle and virtual/augmented reality markets will remain robust over the next five to six years.

Apart from these, data centers are poised to benefit from the heightening reliance on technology in the wake of the coronavirus pandemic. As such data-center landlords, including Iron Mountain, Digital Realty DLR, Equinix, Inc. EQIX and CoreSite Realty Corporation COR, will keep witnessing significant demand.

Hence, Iron Mountain’s effort to supplement its storage segment’s performance by expanding its faster-growing businesses, most notable being the data center segment, is a strategic fit.

In fact, the company’s global data center platform consists of 15 operational facilities across 13 markets that can support more than 350 MW of IT capacity at full build-out. Further, expansion projects and development efforts strengthen its data-center platform, offering a long growth runway.

Iron Mountain currently carries a Zacks Rank #3 (Hold). The company’s shares have gained 4.6%, outperforming the industry’s rally of 0.3% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot stocks we're targeting >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Equinix, Inc. (EQIX) : Free Stock Analysis Report
Iron Mountain Incorporated (IRM) : Free Stock Analysis Report
Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report
CoreSite Realty Corporation (COR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research