January 23, 2018

Iron Mountain closes USD 1.3B acquisition of IO Data Centers

The acquisition diversifies Iron Mountain’s data center and co-location portfolio in a bid to expand across the U.S market.

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Co-location and data center company Iron Mountain has announced that they have closed the acquisition of IO Data Centers in a USD 1.34 billion deal, which includes USD 60 million in cash, subject to company performance. The announcement has come exactly a month after we reported the acquisition of IO’s 4 data centers in Columbus, Ohio, New Jersey and Arizona.

With this acquisition, Iron Mountain has added a total of 728,000 sq.feet of space, providing 62 MW of capacity to their existing data center assets. They further added that this move was made keeping business diversification in mind. Explaining the decision, Mark Kidd, Senior Vice President and General Manager at Iron Mountain Data Centers, commented:

One of the strategic cornerstones of the IO transaction is that it enhances our geographic diversification with expansion capacity in Phoenix, the fourth fastest market for absorption in the U.S. (…). The new leasing activity is an important example of our diverse customer base with growing requirements for co-location capacity. It also highlights the strength of our expanded team of experienced and highly skilled professionals who we welcome to the Iron Mountain family.

Iron Mountain’s transaction with IO follows the data center acquisition of Fortrust in September 2017 in addition to the two data centers in London and Singapore markets they purchased from Credit Suisse in October the same year.

It is clear that Iron Mountain are increasing their presence in a fast-growing data center market. It would be interesting to watch how they capitalize on this presence from here on.

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