Iron Mountain Incorporated IRM has signed a 3-megawatt data-center lease deal for its SIN-1 data center in Singapore. This leasing with a Fortune Global 200 company reflects the decent demand for the company’s data-center space. The tenant will make use of the company’s colocation space and network services, along with storage and office space.
Iron Mountain is building out 2-megawatt of turn-key data-center capacity at SIN-1 to meet consumer demand. This is likely to be accomplished in the fourth quarter of the current year. Moreover, the company has started construction on an additional 2.25-megawatt of capacity for supporting future demand.
Notably, Singapore marks a critical and fast-growing market in Asia and Iron Mountain’s expansion of its global data-center platform with the enterprise-class data center facility — SIN-1 — in Serangoon, Singapore is aimed at capitalization on the favorable fundamentals.
Officially opened in last September, Iron Mountain is witnessing a solid demand for this multi-tenant turn-key data-center facility. With the commencement of this hyperscale deployment, the company’s present capacity at SIN-1 will be 87% utilized, while the capacity under development will be 47% pre-leased.
Aimed at supporting the data-center needs of many Fortune 1,000 customers, this purpose-built facility will have roughly 7-megawatt of capacity across four data halls at full build-out. It offers access to a number of hybrid IT services. These include cloud backup, migration and disaster recovery, along with a range of flexible colocation deployment options through private suites, secure cages as well as individual cabinets.
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 market in Singapore 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 wake of the coronavirus pandemic. Thus, data-center landlords, including Iron Mountain, Digital Realty DLR, Equinix, Inc. EQIX and CoreSite Realty Corporation COR, will keep witnessing significant demand.
Iron Mountain is supplementing its storage segment’s performance with expansion in the company’s faster-growing businesses, most notably being the data-center segment. Data-center wins and a robust leasing pipeline highlight the company’s solid data-center platform which offers a long growth runway. Further, strong demand for connectivity, interconnection and colocation spaces is driving leasing.
Iron Mountain’s shares have gained 3.5%, so far this quarter, as against the industry’s rally of 9%.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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