Iron Mountain, a storage and information management service provider, announced its deal to buy two Credit Suisse data centers in London and Singapore, for $100 million.
Credit Suisse will also enter into a long-term lease with Iron Mountain to maintain their existing data center operations.
Iron Mountain earlier closed the FORTRUST data center acquisition in September, 2017. Iron Mountain aims to enhance its data center presence globally. Iron Mountain provides data center services to organizations across all industries.
The two Credit Suisse data centers would add 273,000 square feet, and over 14 megawatts (MW) of capacity (including future expansion) to Iron Mountain’s portfolio.
Iron Mountain leased 4.2MW to Credit Suisse. After accounting for the 4.2MW leased to Credit Suisse, Iron Mountain will have additional expansion capacity of approximately 10MW in these two attractive data center markets.
Iron Mountain gets presence in two global markets, London and Singapore, in terms of absorption via the transaction.
The London data center located in the Slough Trading Estate has a size of 120,000 square feet. The Singapore data center located in Serangoon has 153,000 total square feet.
Data center acquisitions were not part of the company’s previously disclosed 2020 growth plan, but the company’s strategy of growing its data center business includes expanding through acquisitions as well as organic growth.
Iron Mountain projects a double-digit stabilized yield following build-out and lease-up of the expansion capacity.
“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 center business,” said William L. Meaney, president and CEO of Iron Mountain.