Iron Mountain to acquire IO Data Centers U.S. for $1.3B

Iron Mountain agreed to acquire the U.S. operations of IO Data Centers LLC, a colocation data center services provider based in Phoenix, Arizona, for $1.315 billion plus up to $60 million based on future performance.

The deal includes the land and buildings associated with four state-of-the-art data centers in Phoenix and Scottsdale, Arizona; Edison, New Jersey; and Columbus, Ohio. The existing data center space in the four owned facilities totals 728,000 square feet, providing 62 megawatts (MW) of capacity with expansion potential of an additional 77 MW in Arizona and New Jersey. 

IO Phoenix Campus
Leading interconnected campus with significant expansion potential
Current data center capacity: 38 MW (approximately 95% utilization)
Weighted average remaining lease term of 2.9 years
Expansion capability: 2 - 3 MW through an expansion of the existing shell, plus an additional 60 MW on adjacent 9-acre owned and entitled parcel

IO Scottsdale
Raised floor with dedicated metro optical network to IO Phoenix campus
Current data center capacity: 7 MW (approximately 88% utilization)
Weighted average remaining lease term of 2.2 years

IO New Jersey Campus
830,000 square foot building, including approximately 400,000 square feet of warehouse space for subleasing; former New York Times printing building, partially fitted with data centers, offers proximity to Wall Street and healthcare firms
Current data center capacity: 15 MW (approximately 79% utilization)
Weighted average remaining lease term of 4.3 years
Expansion capability: 15 MW

IO Ohio
Highly efficient data center
Current data center capacity: 2 MW (approximately 98% utilization)
Weighted average remaining lease term of 4.0 years

This agreement follows the acquisition of FORTRUST data center on September 1, 2017, and the announcement of Iron Mountain's international data center expansion through the planned acquisition of two Credit Suisse data centers in the London and Singapore markets.

When the Credit Suisse and IO transactions are consummated in early 2018, Iron Mountain's data center portfolio will total more than 90 MW of existing capacity, with an additional 26 MW of capacity currently under construction and planned and future expansion potential of another 135 MW.