Iron Mountain (NYSE: IRM) boosted its full-year 2026 revenue forecast by $200 million, signaling that the global artificial intelligence buildout is driving record demand for its data center capacity and translating into significant financial gains. The company's stock saw a positive response in pre-market trading following the announcement.
"Our business is experiencing significant momentum, driven by outstanding performance in our growth businesses of data center, ALM, and digital and continued solid growth in our highly recurring physical records storage business," William L. Meaney, President and CEO of Iron Mountain, said in a statement. "Our pipeline momentum continues to build against the 400 megawatts of data center capacity energizing and available over the next 24 months."
The real estate investment trust (REIT) now expects full-year revenue to be between $7.83 billion and $7.93 billion, a substantial increase from its previous forecast of $7.63 billion to $7.78 billion. Adjusted funds from operations (AFFO), a key REIT metric, are projected to be between $5.79 and $5.86 per share. This guidance lift was supported by a strong first quarter, where revenue hit $1.94 billion, surpassing the $1.86 billion consensus estimate, and AFFO reached $1.43 per share, well ahead of the $1.26 analysts expected.
The results underscore the tangible impact of AI on digital infrastructure providers. As companies from tech giants to enterprises race to develop and deploy AI models, the demand for specialized data centers that can handle the immense computing power required has surged. This trend is a primary growth driver for Iron Mountain and competitors like Digital Realty (NYSE: DLR), validating the sector's massive capital expenditures. In a show of confidence, Iron Mountain's board also declared a quarterly dividend of $0.864 per share.
This article is for informational purposes only and does not constitute investment advice.
