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Iron Mountain (IRM) to Build 27-Megawatt Data Center in London

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Iron Mountain Incorporated (IRM - Free Report) is expanding its data center footprint in London with the announcement of a new 27-megawatt built. In addition, the company recently added 4 megawatts of new capacity at its LON-1 data center, bringing the total power capacity at the facility to 9.1 megawatts.

Iron Mountain’s second facility in London, LON-2, is located in the Slough Trading Estate. The three-story facility will offer new colocation opportunities, carrier-neutral connectivity options and easy access to preeminent global peering exchanges, global networks and cloud on-ramps.

Additionally, the expansion at LON-1 will facilitate the company to provide a variety of on-site network services like rich connectivity options and dark fiber accessibility to hundreds of networks, clouds and service providers.

The new facility built and capacity expansion at existing data center are a strategic fit, considering the company is witnessing high demand for data-center space at its LON-1 property.Management stated, “like other Iron Mountain data centers, our Slough data centers are well-suited for Enterprise, Hyperscale and Cloud organizations seeking a highly interconnected data center partner with industry-leading compliance and security.”

Markedly, the development is in line with Iron Mountain’s efforts to supplement its storage segment’s performance with expansion in its faster-growing businesses, most notable being the data center segment. Particularly, other than acquisitions, the company has continued to undertaking organic growth moves on the back of expansion projects and developments. This will enable it to capitalize on the strong demand for connectivity, interconnection and colocation space as well as drive leasing activity.

Also, Iron Mountain's global data center platform comprises 15 operational facilities spread across 13 markets and three continents. Its data center platform offers 445 megawatts of IT capacity at full build-out, including leasable capacity, land as well as buildings held for future development. In 2021, management expects to lease 25-30 megawatts of data-center space.

Admittedly, diminishing preference for archiving original hard-copy documents and shifts in data storage through non-paper based technologies is affecting physical storage volume. Considering storage and records management businesses are core segment for the company, this remains a primary concern as it is reducing service activity levels and records management volume. 

In the past three months, shares of this Zacks Rank #3 (Hold) have appreciated 28.9% compared with its industry's 14.5% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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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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