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American Tower's (AMT) Subsidiary CoreSite Announces Expansion
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American Tower Corporation’s (AMT - Free Report) subsidiary, CoreSite, is making significant strides in meeting the escalating demands of the digital landscape. The recent announcement of major expansions in its New York and Denver data center campuses underscores the company's commitment to providing cutting-edge hybrid IT solutions. The new facilities will add 685,000 square feet of data center space to the company’s portfolio.
The most recent addition to CoreSite's New York campus, referred to as NY3, has obtained final permitting for the construction of an 85,000-square-foot facility with a capacity of 15 critical megawatts (CMW). Additionally, CoreSite received conceptual approval for a Denver market expansion, featuring a three-building data center campus covering approximately 600,000 square feet and boasting a capacity of 60 CMW.
One of CoreSite's flagship projects is the purpose-built NY3 data center adjacent to its existing NY2 facility. This expansion, comprising an 85,000-square-foot facility, with 15 critical megawatts (CMW) of capacity, is a response to the burgeoning needs of public and private cloud providers, enterprises, and network and service providers. The construction of NY3 is expected to be completed in fourth-quarter 2024.
The New York expansion is a strategic move, reinforcing CoreSite's presence on the Eastern Seaboard and enhancing its position as one of the best-connected and most scalable data center campuses in the region. This development aligns with CoreSite's mission to help enterprises enhance application performance, reduce total cost of ownership and accelerate time to market.
In Denver, CoreSite's expansion plans include a three-building data center development on a 15-acre site. This ambitious project aims to meet the increasing capacity and power demands in the Denver market, where CoreSite already operates DE1 and DE2 data centers. The new campus, featuring an on-site substation, will provide 18 CMW of capacity across three floors in the first facility.
Brian Warren, CoreSite's SVP of Development and Product Engineering, emphasized the company's commitment to best practices in data center design and construction. The campus model is driven by customer demand, as well as the surge in the adoption of artificial intelligence and other high-density, high-performance computing applications.
Such efforts offer American Tower the opportunity to capitalize on the CoreSite's highly interconnected data center facilities and bank on the robust demand from enterprises, the cloud, network and IT service providers in the major U.S. markets.
Shares of this Zacks Rank #3 (Hold) company have gained 13.2% in the past three months, outperforming the industry’s growth of 3.6%.
The Zacks Consensus Estimate for Lamar’s current-year FFO per share has been revised 1.7% upward over the past two months to $7.31.
The Zacks Consensus Estimate for STAG Industrial’s 2023 FFO per share has moved marginally upward in the past two months to $2.28 and indicates an estimated increase of 3.2% year over year.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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American Tower's (AMT) Subsidiary CoreSite Announces Expansion
American Tower Corporation’s (AMT - Free Report) subsidiary, CoreSite, is making significant strides in meeting the escalating demands of the digital landscape. The recent announcement of major expansions in its New York and Denver data center campuses underscores the company's commitment to providing cutting-edge hybrid IT solutions. The new facilities will add 685,000 square feet of data center space to the company’s portfolio.
The most recent addition to CoreSite's New York campus, referred to as NY3, has obtained final permitting for the construction of an 85,000-square-foot facility with a capacity of 15 critical megawatts (CMW). Additionally, CoreSite received conceptual approval for a Denver market expansion, featuring a three-building data center campus covering approximately 600,000 square feet and boasting a capacity of 60 CMW.
One of CoreSite's flagship projects is the purpose-built NY3 data center adjacent to its existing NY2 facility. This expansion, comprising an 85,000-square-foot facility, with 15 critical megawatts (CMW) of capacity, is a response to the burgeoning needs of public and private cloud providers, enterprises, and network and service providers. The construction of NY3 is expected to be completed in fourth-quarter 2024.
The New York expansion is a strategic move, reinforcing CoreSite's presence on the Eastern Seaboard and enhancing its position as one of the best-connected and most scalable data center campuses in the region. This development aligns with CoreSite's mission to help enterprises enhance application performance, reduce total cost of ownership and accelerate time to market.
In Denver, CoreSite's expansion plans include a three-building data center development on a 15-acre site. This ambitious project aims to meet the increasing capacity and power demands in the Denver market, where CoreSite already operates DE1 and DE2 data centers. The new campus, featuring an on-site substation, will provide 18 CMW of capacity across three floors in the first facility.
Brian Warren, CoreSite's SVP of Development and Product Engineering, emphasized the company's commitment to best practices in data center design and construction. The campus model is driven by customer demand, as well as the surge in the adoption of artificial intelligence and other high-density, high-performance computing applications.
Such efforts offer American Tower the opportunity to capitalize on the CoreSite's highly interconnected data center facilities and bank on the robust demand from enterprises, the cloud, network and IT service providers in the major U.S. markets.
Shares of this Zacks Rank #3 (Hold) company have gained 13.2% in the past three months, outperforming the industry’s growth of 3.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Lamar Advertising Company (LAMR - Free Report) and STAG Industrial, Inc. (STAG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Lamar’s current-year FFO per share has been revised 1.7% upward over the past two months to $7.31.
The Zacks Consensus Estimate for STAG Industrial’s 2023 FFO per share has moved marginally upward in the past two months to $2.28 and indicates an estimated increase of 3.2% year over year.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.