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American Tower's CoreSite Subsidiary Launches NY3 Data Center
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Key Takeaways
CoreSite launched NY3 in Secaucus, adding 138,000 square feet near its existing NY2 facility.
The new site supports liquid cooling, enabling efficient AI-driven workloads for enterprises.
NY3 strengthens access to cloud providers, dark fiber and nationwide interconnection options.
American Tower Corporation’s (AMT - Free Report) subsidiary, CoreSite, recently announced the launch of another data center facility, NY3. Located in Secaucus, NJ, and part of the New York metropolitan area adjacent to its existing NY2 site, the new facility will add more than 138,000 square feet of data center space to the company’s portfolio.
Coresite’s NY2 and NY3 facilities also support the deployment of advanced liquid cooling solutions, which are a major prerequisite for thermal efficiency to perform AI-driven workloads smoothly.
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. It will enable customers in the New York Metro area to use the Open Cloud Exchange and access all major cloud providers and high-count dark fiber interconnections. This will aid users in scaling effectively through all markets in Coresite’s interconnected nationwide portfolio.
With the adoption of hybrid IT strategies, enterprises rely heavily on cloud interconnection. Colocation data centers are becoming increasingly inevitable for working with generative AI applications and workloads. Coresite’s NY3 development will provide purpose-built infrastructure for enterprises to enhance their performance and scale through robust interconnectivity solutions to embrace their digital transformation.
Coresite’s NY3 launch gives a major boost to its growth strategy, now consisting of 30 data centers spanning 4.5 million square feet across 11 key U.S. markets.
Conclusion
The NY3 launch will provide American Tower with the opportunity to capitalize on CoreSite's highly interconnected data center facilities to meet the robust demand from enterprises, cloud, network and IT service providers in major U.S. markets.
With growth in cloud computing, the Internet of Things and Big Data, and an increasing number of companies opting for third-party IT infrastructure, data center companies are experiencing a booming market. To capitalize on the growing opportunity, American Tower is focusing on expanding its data center footprint.
In the second quarter of 2025, the company attained data center revenue growth of 8.4%. In April 2025, American Tower completed the acquisition of a multi-tenant data center facility in Denver, CO, in which it previously leased space (DE1). The acquisition added incremental customer leases and operating spaces within DE1. In the second quarter of 2025, AMT spent approximately $185 million on the above data center facility acquisition.
Shares of this Zacks Rank #3 (Hold) company have declined 4.7% over the past month compared with the industry’s fall of 1.2%. However, analysts seem bullish on it, with the Zacks Consensus Estimate for 2025 funds from operations (FFO) per share being raised marginally higher to $10.60 over the past two months.
Image: Bigstock
American Tower's CoreSite Subsidiary Launches NY3 Data Center
Key Takeaways
American Tower Corporation’s (AMT - Free Report) subsidiary, CoreSite, recently announced the launch of another data center facility, NY3. Located in Secaucus, NJ, and part of the New York metropolitan area adjacent to its existing NY2 site, the new facility will add more than 138,000 square feet of data center space to the company’s portfolio.
Coresite’s NY2 and NY3 facilities also support the deployment of advanced liquid cooling solutions, which are a major prerequisite for thermal efficiency to perform AI-driven workloads smoothly.
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. It will enable customers in the New York Metro area to use the Open Cloud Exchange and access all major cloud providers and high-count dark fiber interconnections. This will aid users in scaling effectively through all markets in Coresite’s interconnected nationwide portfolio.
With the adoption of hybrid IT strategies, enterprises rely heavily on cloud interconnection. Colocation data centers are becoming increasingly inevitable for working with generative AI applications and workloads. Coresite’s NY3 development will provide purpose-built infrastructure for enterprises to enhance their performance and scale through robust interconnectivity solutions to embrace their digital transformation.
Coresite’s NY3 launch gives a major boost to its growth strategy, now consisting of 30 data centers spanning 4.5 million square feet across 11 key U.S. markets.
Conclusion
The NY3 launch will provide American Tower with the opportunity to capitalize on CoreSite's highly interconnected data center facilities to meet the robust demand from enterprises, cloud, network and IT service providers in major U.S. markets.
With growth in cloud computing, the Internet of Things and Big Data, and an increasing number of companies opting for third-party IT infrastructure, data center companies are experiencing a booming market. To capitalize on the growing opportunity, American Tower is focusing on expanding its data center footprint.
In the second quarter of 2025, the company attained data center revenue growth of 8.4%. In April 2025, American Tower completed the acquisition of a multi-tenant data center facility in Denver, CO, in which it previously leased space (DE1). The acquisition added incremental customer leases and operating spaces within DE1. In the second quarter of 2025, AMT spent approximately $185 million on the above data center facility acquisition.
Shares of this Zacks Rank #3 (Hold) company have declined 4.7% over the past month compared with the industry’s fall of 1.2%. However, analysts seem bullish on it, with the Zacks Consensus Estimate for 2025 funds from operations (FFO) per share being raised marginally higher to $10.60 over the past two months.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and SL Green Realty (SLG - 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 DLR’s 2025 FFO per share has been revised marginally upward over the past two months to $7.20.
The Zacks Consensus Estimate for SLG’s current-year FFO per share has been revised northward by almost 2% in the past two months to $6.21.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.