Iron Mountain Posts Record Quarter with 50% Data Center Business Growth

Iron Mountain reported a record first quarter, with its data center business growing approximately 50% year-over-year, reflecting surging enterprise demand for digital storage and AI infrastructure. Adjusted funds from operations (AFFO) came in at $1.43 per share, ahead of FactSet's estimate of $1.39, underlining the company's ability to convert rapid data center growth into shareholder cash returns.

The data center segment crossed $1 billion in annualized revenue in 2026, now representing Iron Mountain's primary growth engine. Full-year guidance called for over 25% data center revenue growth, and Q1 performance suggests the company is tracking ahead of that target. The legacy physical records storage business continues to generate stable, predictable cash flows that fund data center expansion capital.

For a company long associated with physical document storage, Iron Mountain's transformation into a hybrid data and digital infrastructure REIT is generating tangible shareholder value. The 50% data center growth rate, combined with stable legacy revenues, positions IRM uniquely among REITs as both a defensive income play and an AI infrastructure beneficiary — a combination that few REIT peers can credibly claim.

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