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Iron Mountain (IRM) Partners for LINX NoVA PoP at Its Data Center

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Iron Mountain Incorporated’s (IRM - Free Report) division, Iron Mountain Data Centers, has extended its partnership with the London Internet Exchange (“LINX”). The partnership will see LINX installing a switch at Iron Mountain’s VA-1 data center, marking its fourth regional Internet Exchange Point (“IXP”) in Northern Virginia. This will make the facility a full LINX-interconnection location.

Notably, in a bid to keep Internet traffic local, LINX NoVA was launched as a stand-alone regional IXP in 2014. It is not connected back to LINX in London and can currently be accessed at Ashburn, Reston and Manassas in Northern Virginia.

Per management, the addition of the LINX NoVa Point of Presence (PoP) at its VA-1 data center demonstrates its focus to meet the interconnection needs of its customers. The partnership will enable the company’s customers to interconnect to a peering platform, while keeping Internet traffic local, thus, benefiting from reduced latency and higher redundancy for network traffic. Moreover, peering is likely to reduce costs relative to other data-transfer methods.

Notably, such efforts enhance Iron Mountain’s data-center offering and will likely help the company to attract more customers. In fact, the company is witnessing strong data-center leasing momentum.

In fact, it executed 12.3 megawatts of new and expansion leases during the third quarter, bringing nine-month leasing to around 51 megawatts. Moreover, management’s full-year leasing outlook is more than 55 megawatts, remarkably up from the originally mentioned 15-20 megawatts.

Markedly, through expansion projects and development efforts, Iron Mountain has strengthened its data-center platform that comprises 15 data centers across 13 markets and can support more than 350 megawatts of IT capacity at full build-out.

Such effort comes as part of the company’s aim to shift the revenue mix to faster-growing businesses, including emerging markets, data centers, and adjacent business segments. This has been driving continued improvement in adjusted EBITDA margins.

However, the pandemic has led to numerous shutdowns of businesses and an increase in remote-working policies across companies, resulting in a slowdown in the service activity level, thereby, affecting Iron Mountain’s service business.

Shares of this Zacks Rank #3 (Hold) have plunged 23.7% over the past year compared with the industry’s decline of 2.7%.



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Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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