Data Centre Hosting/co-location Supplier of the Year
2021 was an exceptional year for Iron Mountain Data Centers (IMDC) in terms of performance and positioning for future success. We enjoyed our best ever financial year, made new partnerships, and announced investments and initiatives which strengthen our ability to provide customers with innovative, secure long-term data center solutions. Our greatest achievements were in capacity and customer growth and extending our leadership in the areas of compliance and sustainability.
Capacity & Demand
The business now has leasable capacity of over 150MW and can scale up to 445 MW on three continents. Taking the latest results, IMDC business revenue increased 21.7% in the third quarter 2021, or a 21.2% increase compared to Q3 2020, another record-breaking year. During the first three quarters the business executed 22 MW of new and expansion leasing, with a number of other sizeable deals signed in Q4 putting the business significantly ahead of forecast. In addition to double-digit growth in retail colocation, hyperscale demand for facilities took off, rising by 40% and driving organic growth of around 15%.
In April IMDC signed two leases with a Fortune 100 technology customer, at its AZP-2 data center in Phoenix, Arizona. The 6 MW expansion was deployed by end 2021.
In June we announced the buildout of a new highly interconnected 27 MW facility in London. LON-2 will be certified by BREEAM, reflecting our commitment to sustainability. This followed the successful addition of 4 MW of new capacity at LON-1 bringing total power capacity at the facility to 9.1 megawatts.
In July we acquired a new data center in Frankfurt. The two-storey, 20,000 square meter colocation data center (which cost EUR 76 million) has 2.6 MW of leased capacity and 8 MW available for retail colocation customers with the option to expand in the future to add edge computing. The FRA-2 data center has robust network connectivity, including access to DE-CIX. The acquisition expands Iron Mountain’s presence in the Frankfurt market, which includes a 27 MW pre-leased facility (FRA-1).
In the spring of 2021 IMDC finalized a joint venture with Web Werks, one of India’s top colocation data center providers. This entails an investment of $150 million over the next two years. Web Werks operates three Tier 3, carrier-neutral data centers in Mumbai, Pune and Delhi NCR.
Following this IMDC and Web Werks announced the acquisition of land for a purpose-built greenfield data center in Navi Mumbai. This new standalone 100,000 sqft structure will be a next-generation, Uptime Tier 3-designed data center with 12.5 MW of power and a rich interconnectivity ecosystem consisting of major telcos, 160+ ISPs and three major Internet Exchanges: De-CIX, Extreme IX and NIXI.
New Edge Solution
In 2021 we also worked with customers to develop a compelling new modular edge solution to leverage our unique global footprint, which includes some 1400+ secure, connected, storage facilities in 50 countries, 695 of which are located close to city centers or airports in the sub-5ms metro edge zone.
Greener Global Standards
Iron Mountain has the most comprehensive and consistent compliance program in the colocation industry. Third party standards include HIPAA, FISMA High, PCI-DSS, FedRAMP, ISO 27001, 9001, Open-IX and relevant IX certifications, and SOC 2/3. This year we extended our certifications, completing the global rollout of the ISO 50001 Energy Management and ISO 14001 Environmental Management certifications, a first in the industry.
Since 2017 IMDC has been the only global data center provider with renewable power agreements that more than offset 100% of power consumption for all data centers. This year we took further steps on the road to full sustainability and a decarbonized grid.
We signed the Climate Neutral Data Centre Pact, initiated by EUDCA. The pact details efficiency and renewable energy goals for data centers and the targets for achieving them against a goal of carbon-neutrality by 2030. In May 2021 Iron Mountain also announced a range of measurable commitments under the long-term strategy of Securing a Sustainable Future. These included the commitment to use 100% clean electricity, 100 percent of the time in our data centers by 2040. This goes beyond our RE100 commitment of 100 percent renewable electricity, and uses the Google methodology for matching site-by-site electricity use with local clean power generation every hour, every day to achieve 24/7 clean power. We are the only global data center service provider to have made this commitment.
As a step towards this goal, we entered into an innovative agreement with RPD Energy and Direct Energy to track the hourly renewable energy generation and compare it to our load at Iron Mountain Data Centers. We’re now moving beyond matching our volumes on an annual basis and seeking to source each hour of every day from a local, clean energy resource, with tracking now in place for 75% of our power consumption.
New Lifecycle Management Solutions
In December we took another major step towards reduction of environmental impact while opening a new revenue stream. We committed just under a billion dollars to the purchase of ITRenew, a global leader in mission-critical data center lifecycle management solutions. ITRenew serves large multinationals and hyperscalers, which account for a significant and growing proportion of global data center space. This innovative circular economy model will help the industry save money at the same time as achieving critical sustainability benefits. Adoption can lower equipment TCO by 24% or more and decrease the GHG impact (measured in equivalent carbon dioxide, or CO2e) by over 24%.
IMDC is a comparatively new global data center player, but we believe that in the last year our attention to and investment in responsible customer-led growth around the world, and our increasing leadership in comprehensive standards and sustainability make us an excellent candidate for the DCS Data Center Hosting/Colo Supplier of the Year Award.