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Iron Mountain (IRM) Secures 2.4 Megawatt Lease in Pennsylvania

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Iron Mountain Incorporated (IRM - Free Report) has signed a 10-year 2.4-megawatt lease with a Fortune 100 Tech customer at its WPA-1 facility in Boyers, PA. The hyperscale enterprise software provider also holds existing deployments at other Iron Mountain data centers. The lease is expected to commence in the first quarter of 2022.

The lease reflects decent demand for the company’s data-center space. The 200-acre facility is located 60 minutes north of Pittsburgh and is based 220 feet underground. It offers the full range of Iron Mountain’s services with more than 300,000 square feet of data center space and provides 15 megawatts of total potential IT capacity. WPA-1 is protected by federal grade security and is placed in a location with negligible risk for man-made & natural disasters. The facility is powered by 100% renewable energy.

Per management, “As public and private sector organizations face increasing privacy, security and environmental regulations for their data center needs, our data centers in Western Pennsylvania and Northern Virginia are in high demand as the ideal option for connecting and protecting critical IT infrastructure and applications.”

Iron Mountain is seeing encouraging demand for its data-center space from both new customers and the existing ones. Recently, the company has signed a 6 megawatt lease with a leading hyperscaler at its data-center campus in Manassas, VA. The lease has a term of five years and is expected to commence in the fourth quarter this year.

Through the first seven months of 2021, the company leased 19 megawatts of capacity at its global data-center portfolio. The hyperscale leases particularly complements the company’s Pennsylvania and Virginia data-center campuses, which presently includes a vast array of core retail enterprise and hyperscale co-location clients.

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 providers are witnessing a boom. Furthermore, the estimated growth rates for artificial intelligence, autonomous vehicle and virtual/augmented reality markets will be robust over the next five to six years.

Data centers are poised to benefit from the heightening reliance on technology in wake of the coronavirus pandemic. Data-center landlords, including Iron Mountain, Digital Realty (DLR - Free Report) , Equinix, Inc. (EQIX - Free Report) and CoreSite Realty Corporation (COR - Free Report) , are anticipated to keep witnessing significant demand for their properties.

Shares of Iron Mountain have jumped 36.3% over the past six months compared with the industry’s 17.2 % growth. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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