Iron Mountain Lifts Dividend 15% as Data Center Revenue Jumps 34%

Iron Mountain (NYSE: IRM) raised its quarterly dividend 15% on November 5, 2026, lifting the payout from $0.864 to $0.993 per share on the back of data center revenue that grew 34.0% year over year. The company signed 137 megawatts of new data center leases year to date. A business built on storing paper boxes now pays for its dividend raises with server halls.

"Based on our strong 2026 growth and continued positive outlook, we are pleased to increase the dividend by 15%," CEO William Meaney said in the statement.

How much did the data center business grow?

Global Data Center revenue reached $273.6 million in the third quarter, up 34.0% from a year earlier. The segment's adjusted EBITDA margin expanded to 56.3% from 52.6%, and renewal pricing rose 10% on a cash basis. Quarterly leasing totaled 102.5 MW, including 51 MW in Mumbai.

The legacy records and information management (RIM) business grew 7.0% in the same quarter. It remains the cash engine: storage rental revenue is tracking toward its 38th consecutive year of organic growth, at a 44% segment margin. Growth businesses supplied 11 of the 16 percentage points of Iron Mountain's consolidated 2026 growth.

"It won't be that many years before it's 50% of the company," Meaney said of the growth portfolio, which pairs data centers with digital services on top of the storage base.

The takeaway: server halls, not storage boxes, now supply most of Iron Mountain's growth, while the storage margin funds the build.

Does cash flow cover the higher payout?

Third-quarter adjusted funds from operations (AFFO) came in at $1.53 per share. Management targets a payout ratio in the low 60s percent, and the new $0.993 payout equals about 63% of the fourth-quarter AFFO guidance of $1.57 per share.

"In light of our performance in 2026 and outlook for AFFO, our Board increased our quarterly dividend by 15% to $0.993 per share," CFO Barry Hytinen said.

Full-year AFFO per share guidance of $5.94 to $6.00 implies roughly 15% growth, matching the dividend increase. Year-to-date free cash flow improved by nearly $400 million. At a share price of $109.02, the forward yield sits near 3.6%.

The takeaway: the payout is fully covered, and AFFO is growing as fast as the dividend itself.

How does the raise compare with Digital Realty and Equinix?

Iron Mountain's 15% increase stands out against its pure-play data center peers. Digital Realty (NYSE: DLR) held its dividend flat at $1.22 per quarter from Q1 2025 through Q1 2026, even after signing a 200-megawatt AI inference lease. Its cash renewal spread was 5.0%.

Equinix (NASDAQ: EQIX) last raised its dividend by 10% and has guided to long-term AFFO per share growth of 9-12% on $5-$6 billion of 2026 capital expenditure. "Customer demand is broad-based and growing," Equinix CEO Adaire Fox-Martin said.

Iron Mountain's hybrid model explains the gap. Its smaller data center base produces faster percentage growth, while record cash generation from storage supports construction spending.

The takeaway: Iron Mountain is currently raising its payout faster than either pure-play competitor.

What is the risk to track?

Net lease-adjusted leverage of 4.8x is the lowest since Iron Mountain converted to a REIT in 2014. Two balance sheet items warrant attention, though: the current portion of long-term debt rose to $1,232.9 million from $216.1 million, and shareholders' equity stands at negative $1.06 billion. Capacity under construction requires $3.468 billion in total investment.

Investors have already flagged the refinancing load. Shares fell 6.57% over the past week, though they remain up 34.42% year to date.

The takeaway: the growth story is intact, but the debt schedule and a $3.5 billion construction bill set the terms for future raises.

Roughly 325 megawatts of capacity should come online over the next 24 months, and the pace of leasing plus the terms of refinancing will decide whether the 15% dividend cadence can continue — watch the late-February earnings report and the early March investor day for the next signal.