Tuesday, October 17, 2017

Credit Suisse sells UK, Singapore data centres to Iron Mountain, the company’s first ever sites outside USA

UK transaction is the second large data centre acquisition in less than 10 HOURS following ST Telemedia Global Data Centers acquisition of Virtus Data Centres.

Iron Mountain’s (NYSE: IRM) first data centre locations beyond US borders will be in London and Singapore following a $100m acquisition of two Credit Suisse facilities.

The sale of the two sites will add to Iron Mountain’s portfolio 273,000 sqf of space and over 14 megawatts (MW) of capacity (including future expansion).

In addition, Credit Suisse will enter into a long-term lease with Iron Mountain to maintain their existing data centre operations amounting to 4.2MW of the power capacity available.

The London data centre is 120,000 total sqf and located in the Slough Trading Estate, one of the densest data centre hubs in the UK.

Meanwhile, the Singapore data centre is 153,000 total sqf and located in Serangoon.

The transaction is subject to customary closing conditions, with completion anticipated in the first quarter of 2018. The company intends to fund the purchase with proceeds from share issuance under its ATM program, filed earlier today.

Iron Mountain President and CEO William L. Meaney, said: “With these acquisitions – our first outside of the US and the agreement coming just weeks after the acquisition of the Fortrust data centre – we are continuing to expand our global data centre capabilities.

“The demand for, and growth in, our data centre offerings has been consistent and strong, drawing customers in highly regulated industries.

“The combination of our capabilities and the recent completion of the first phase of our Northern Virginia campus would strengthen the foundation of our fast-growing data centre business, and are consistent with Iron Mountain’s strategic focus on leveraging our core strengths to develop and accelerate the growth of new business opportunities.”