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Iron Mountain has increased its full-year financial outlook, supported by strong demand for data centres driven by artificial intelligence growth. The company reported better-than-expected first-quarter earnings and revenue, along with higher adjusted funds from operations. Its data centre leasing activity has seen a strong start this year, reflecting growing enterprise reliance on AI infrastructure. Alongside this, its traditional storage and records management business continues to provide steady cash flow from a diversified client base. The company has also announced a quarterly dividend, signalling confidence in its financial position and growth trajectory.
Iron Mountain has raised its annual forecast after seeing strong demand for its data centre business, driven by increasing adoption of artificial intelligence technologies across industries. Advertisement
The growing need for computing power to train AI models and run applications like ChatGPT has led to a sharp rise in demand for data centres. This trend has benefited companies such as Iron Mountain, which leases data centre capacity and operates as a real estate investment trust (REIT).
For the first quarter, the company reported adjusted funds from operations (AFFO) of USD 1.43 per share, exceeding analyst estimates of USD 1.26. Revenue for the quarter stood at USD 1.94 billion, also higher than the expected USD 1.86 billion, reflecting strong operational performance.
Iron Mountain stated that its core storage and records management business continues to support stable cash flows. The company serves a wide client base that includes major global firms such as Boeing, Akamai Technologies and Coca-Cola, which helps maintain consistent demand across its traditional business segments.
Based on current momentum, the company now expects full-year revenue to be in the range of USD 7.83 billion to USD 7.93 billion, higher than earlier guidance of USD 7.63 billion to USD 7.78 billion. This is also above market estimates of around USD 7.74 billion.
The annual AFFO forecast has also been revised upward. The company now expects AFFO between USD 5.79 and USD 5.86 per share, compared to its earlier estimate of USD 5.69 to USD 5.79 per share. Market estimates had placed this figure at USD 4.68 per share.
President and CEO William Meaney said that the company is increasing its cross-selling efforts across asset lifecycle management and digital solutions, while highlighting a strong start in data centre leasing. He added that Iron Mountain has already leased 32 megawatts of capacity so far this year.
In addition, the company’s board has declared a quarterly cash dividend of USD 0.864 per share of common stock, indicating continued confidence in its financial performance.
Iron Mountain has been gradually expanding its presence in digital infrastructure in recent years, shifting beyond its traditional paper storage business. The current surge in AI-related demand is further strengthening its position in the data centre segment, which is becoming a key growth driver for the company.
Source Reuters
5th Jun, 2025
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