Iron Mountain (IRM) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Business evolution and growth strategy

• Transitioned from a physical storage focus to a technology-enabled infrastructure model, now comprising asset lifecycle management (ALM), data centers, and digital solutions.

• ALM, data center, and digital businesses are all experiencing strong growth, with ALM expected to become the largest revenue contributor in the next few years.

• Cross-selling to a large, longstanding B2B client base of 245,000 clients is a key growth lever.

• Revenue guidance for the year is $7.7 billion, with nearly $3 billion in EBITDA and sustained double-digit growth rates.

• Capital allocation targets leverage at 4.5x-5.5x, with significant retained cash flow funding growth, especially in data centers.

Asset lifecycle management (ALM)

• ALM addresses a $35 billion, fragmented market, serving both enterprise and hyperscale clients with IT asset disposition and decommissioning.

• ALM revenue grew from $38 million in 2021 to $633 million last year, with guidance for $850 million this year.

• Enterprise ALM offers 20%-30% margins and is expanded through selective small acquisitions, typically at 5x-7.5x EBITDA.

• Hyperscale ALM is more concentrated, with a revenue share model and thinner margins, but benefits from hyperscaler CapEx cycles and rising used equipment values.

• ALM is expected to be the largest business segment soon, driven by both organic growth and ongoing tuck-in acquisitions.

Data center business

• Data center revenue exceeded $1 billion this year, with low 50s EBITDA margins and nearly full occupancy (98%).

• 190 MW under construction (70% pre-leased), plus 660 MW in land held for development, with robust leasing pipeline.

• Over the next two years, 400 MW will energize, with major projects in Northern Virginia, Richmond, India, and Madrid.

• Pre-leasing to major hyperscalers on 10-15 year leases, targeting 10%-11% cash-on-cash unlevered returns.

• Power scarcity in key markets supports strong pricing and returns, with expectations for continued high demand from AI and cloud clients.