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American Tower's Coresite Builds New DE3 Data Center in Denver

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Key Takeaways

  • American Tower's unit Coresite is building the DE3 data center at 4900 Race Street in Denver.
  • DE3 will span 180,000 square feet and support AI, cloud, and other high-performance workloads.
  • The new site connects with DE1 and DE2, bringing Coresite's Denver capacity to 600,000 square feet.

American Tower’s (AMT - Free Report) subsidiary, Coresite, recently announced that it is building a new data center called DE3, at 4900 Race Street in Denver. This data center is expected to be ready in 2026.

The DE3 data center will have 180,000 square feet of space and will expand the digital infrastructure serving the Denver metro area. It is designed to handle high-density, high-performance computing needs like artificial intelligence (AI), cloud services and other mission-critical workloads.

Coresite already operates two data centers in the heart of downtown Denver. One is DE1, the Denver Gas and Electric Building, which is one of the most connected buildings in the Rocky Mountain region, located at 910 15th Street. The other is DE2, located at 639 E. 18th Ave.

DE3 is special because it will be the first colocation data center built in Denver in the last two decades. It will be connected with high-count dark fiber to DE1 and DE2 data centers.

CoreSite’s data centers are multi-tenant colocation facilities that provide individualized space, power, cooling and connectivity services to many companies within the same building.

Once the DE3 data center is completed, CoreSite’s Denver campus will offer nearly 600,000 square feet of space and 60 megawatts of critical power capacity.

Management Commentary

Per Adam Post, SVP of corporate development and finance at CoreSite, “On a citywide scale, DE3 will provide customers with the interconnection and improved computing performance needed to thrive, strengthening Denver’s reputation as a tech hub and driving economic growth.”

Conclusion

The DE3 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.

Over the past month, shares of this Zacks Rank #3 (Hold) company have declined 4.2% compared with the industry’s fall of 0.1%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are SL Green (SLG - Free Report) and Plymouth Industrial REIT (PLYM - 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 SLG’s 2025 FFO per share has moved 54 cents northward to $6.21 over the past three months.

The Zacks Consensus Estimate for PLYM’s 2025 FFO per share has moved 2 cents upward to $1.88 over the past two months.

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


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