Iron Mountain raises dividend 15% as data center revenue jumps 34%

By Sophie Lindqvist

Iron Mountain (NYSE:IRM) raised its quarterly dividend by 15% to $0.993 per share on November 5, 2026, after Q3 Global Data Center revenue rose 34.0% to $273.6 million.

The company also reported 137 megawatts of new data center leases year to date, giving it a larger pipeline for future revenue and cash flow. That shift matters because Iron Mountain now offers income investors faster dividend growth than pure-play data center peers, but the payout depends more heavily on leasing and debt markets.

What changed in the dividend?

Iron Mountain increased its quarterly payment from $0.864 to $0.993 per share. CEO William Meaney said the decision reflected strong 2026 growth and the company’s continued positive outlook.

24/7 Wall St. characterized the move as a financing-model shift for a company built around storing paper boxes. Data-center leasing now supports its dividend increases, while the legacy records-storage business remains an important cash-generating base.

Takeaway: The dividend increase is covered, but its durability depends on keeping new leases and cash flow coming.

How are data centers driving growth?

Iron Mountain’s Q3 results showed the mix between its newer data center business and its legacy operations:

• Global Data Center revenue rose 34.0% to $273.6 million.
• Data center adjusted EBITDA margin expanded to 56.3% from 52.6%, while renewal pricing increased 10% on a cash basis.
• Quarterly leasing reached 102.5 megawatts, including 51 megawatts in Mumbai.

Iron Mountain said growth businesses supplied 11 of the 16 percentage points of its 2026 consolidated growth. Legacy Global RIM grew 7.0%, keeping records storage in the mix even as data centers supplied most of the expansion.

The mix matters because Iron Mountain still earns money from physical storage while its fastest-growing segment serves computing workloads. “It won’t be that many years before it’s 50% of the company,” Meaney said of the growth portfolio.

Records storage was also tracking toward a 38th consecutive year of organic rental rental growth, with a 44% segment margin. That business gives Iron Mountain a steadier base while it builds its data-center portfolio.

Takeaway: Data centers now supply most of the growth, while records storage still provides the financial base.

Does AFFO cover the bigger payout?

Iron Mountain reported Q3 AFFO of $1.53 per share, and management targets a payout ratio in the low 60% range. “In light of our performance in 2026 and outlook for AFFO, our Board increased our quarterly dividend by 15% to $0.993 per share,” Iron Mountain CFO Barry Hytinen said.

24/7 Wall St. calculated that the new payout equals about 63% of Iron Mountain’s guided Q4 AFFO of $1.57 per share. The company’s full-year AFFO guidance of $5.94 to $6.00 implies roughly 15% growth, matching the dividend increase.

The report said year-to-date free cash flow had improved by nearly $400 million. At a share price of $109.02, the calculated forward yield was about 3.6%.

Takeaway: Current cash generation covers the larger dividend, though future payout growth still depends on AFFO rising.

How does Iron Mountain compare with its peers?

24/7 Wall St. compared Iron Mountain with two pure-play data center companies. Digital Realty (NYSE:DLR) held its dividend at $1.22 per quarter from Q1 2025 through Q1 2026, despite signing a 200-megawatt AI inference lease; its cash renewal spread was 5.0%.

Equinix (NASDAQ:EQIX) last raised its dividend by 10%. It had previously guided to long-term AFFO per share growth of 9% to 12% on $5 billion to $6 billion of 2026 capital expenditure. Equinix CEO Adaire Fox-Martin described customer demand as broad-based and growing.

24/7 Wall St. said Iron Mountain’s hybrid model gives it a smaller data center base and faster percentage growth. Its record cash flow also supports the cost of building new capacity.

The report also said the AI buildout is lifting power, cooling, and networking suppliers. It separately pointed to seven AI infrastructure names outside chipmakers in a free report.

Takeaway: Iron Mountain offers faster payout growth than pure-play peers, with a less concentrated data-center base.

Where does the financial risk sit?

Iron Mountain’s net lease-adjusted leverage was 4.8 times, the company’s lowest level since its 2014 REIT conversion. That ratio suggests a more manageable balance sheet than before, but 24/7 Wall St. flagged several rising obligations.

The current portion of long-term debt rose to $1,232.9 million from $216.1 million. Shareholders’ equity stood at negative $1.06 billion, and capacity under construction requires $3.468 billion in total investment.

Investors noticed the tension around those figures. Iron Mountain shares fell 6.57% over the past week, although they remained up 34.42% year to date.

Takeaway: Low lease-adjusted leverage helps, but debt maturities and construction spending remain the main pressures.

What should investors watch next?

24/7 Wall St. said roughly 325 megawatts of capacity should come online over the next 24 months. The company’s late-February earnings report and early March investor day are the next scheduled checkpoints for new leasing, construction progress, and cash generation.

For income investors, Iron Mountain offers faster dividend growth than its pure-play peers. That advantage depends on continued leasing momentum and debt refinancing, rather than on the legacy storage business alone.

The decisive evidence will come with the late-February earnings report and early March investor day: whether new capacity converts into AFFO while $3.468 billion of construction and the higher current portion of long-term debt remain manageable.