Iron Mountain's 2025 Q2 Earnings Call: Contradictions Unveiled on Data Center Strategy and Growth Prospects

Data center leasing market focus, data center capacity and market presence, data center leasing and growth outlook, data center megawatts and leasing targets, and ALM growth and revenue drivers are the key contradictions discussed in Iron Mountain's latest 2025Q2 earnings call.



Record Financial Performance:
- Iron Mountain achieved an all-time high for quarterly revenue at $1.7 billion, up 12% year-on-year.
- Additionally, adjusted EBITDA and AFFO grew by 15% each, reaching $628 million and $370 million, respectively.
- The growth was driven by strong performance across all business segments, including increased revenue in the physical storage business and accelerated growth in digital solutions.

Data Center Growth:
- Data Center revenue increased by 24%, with a 26% organic storage growth, driven by 23 megawatts in new commencements and 25 megawatts in renewed leases.
- The strong performance was a result of continued strong pricing trends and improved pricing spreads.
- Iron Mountain expects data center revenue to increase by nearly 30% for the full year, reflecting the commencement of additional pre-leased assets.

Asset Management and Life Cycle Management:
- The Asset Life Cycle Management (ALM) business achieved 70% revenue growth, including 42% organic growth.
- The growth was driven by increased volumes in both enterprise and data center decommissioning channels, as well as improved component pricing trends.
- Iron Mountain's strong reputation for secure chain of custody and global presence supported these gains.

Digital Solutions Expansion:
- The digital solutions business reported record revenue, with a projected run rate exceeding $500 million.
- Growth was driven by demand for the company's Insight Digital Experience Platform (DXP) and the integration of AI-powered tools.
- The platform's ability to structure unstructured data and automate workflows attracted significant interest from enterprise clients, such as global SaaS companies.