Iron Mountain (IRM) Boosts Presence in EMEA and North America

Iron Mountain IRM recently closed the acquisition of XData Properties, one of the largest data center parks in Madrid, and expanded its data center footprint in the EMEA region.

The direct access to the Madrid-Barcelona fiber optic route, the largest fiber highway in the Iberian Peninsula, makes Madrid a strategic and rapidly growing market with high demand across segments.

With this buyout, IRM will be able to support a robust ecosystem where cloud, network, service providers and consumers can seamlessly connect with each other. Moreover, the region has a growing demand for hyperscale cloud requirements, with several entities intending to develop a Spanish cloud region.

Being centrally located within hyperscale availability zones and having an ideal position for built-to-suit deployments, IRM’s latest buyout seems a strategic fit.

At present, the on-site data center has a capacity of 3 megawatts. While the property has enough power secured to develop 79 megawatts in the forthcoming years, the initial 20-megawatt data center is set to be completed by 2024.

Per Mark Kidd, executive vice president and general manager of data centers at Iron Mountain, “This acquisition supports our strategy and commitment to selectively expand into emerging data center markets in order to meet our customers' critical demand needs. We are also pleased that Spain is quickly becoming one of Europe’s leaders in renewable energy generation, which we will leverage to support our and our customers’ sustainability goals.”

Simultaneously, Iron Mountain bought a 10-acre land parcel and 50+ MVA (expandable to 100+ MVA) substation in Phoenix, AZ, and broadened its data center presence in North America. The land was bought to develop a 36-megawatt, 230,000 square feet data center (AZP3), phase one of which is expected to be delivered in 2024.

The parcel is situated adjacent to IRM’s existing 39-acre campus, where it has its AZP1 (41 megawatts) and AZP2 (48 megawatts) data centers. This will provide the company’s customers with the lowest possible latency access to its robust ecosystem.

The low disaster risk, fiber infrastructure and relatively low costs compared with other markets make Phoenix one of North America’s leading data center markets. Hence, IRM’s expansion moves into this market seem prudent.

In addition, Iron Mountain’s Phoenix campus is one of the leading network-dense locations in the market, with more than 25 network providers. It even has some of the key peering exchanges, including the Arizona Internet Exchange (AZIX), DE-CIX Phoenix and Ninja-IX.

Over the years, Iron Mountain has been expanding its fast-growing businesses, especially the data center segment, to supplement its storage segment performance. Further, the strong demand for connectivity, interconnection and colocation space has been driving leasing activity for the company’s data center business. Therefore, its recent expansionary moves are likely to be accretive to long-term growth.

Shares of this Zacks Rank #3 (Hold) company have gained 16.7% in the quarter-to-date period compared with its industry’s growth of 4%.

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