Iron Mountain Incorporated (IRM): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out if a century-old storage company can successfully morph into a modern data center giant, and frankly, the numbers show a serious commitment. Honestly, Iron Mountain Incorporated (IRM) is betting big on this pivot, guiding revenue up to $6.94 billion for 2025 by backing its 725 million cubic feet of physical assets with nearly 1.3 gigawatts of new digital capacity. This transformation isn't cheap; they are planning capital expenditures of about $1.8 billion this year to make it happen, funding a strategy that blends stable storage rental revenue (which hit $1.03 billion in Q3 2025) with high-growth colocation. If you want to see the precise mechanics of how they are funding this massive shift-from their key activities to their cost structure-dive into the full Business Model Canvas below; it shows exactly where the risk and reward lie in this dual-engine strategy.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Key Partnerships

You're looking at how Iron Mountain Incorporated builds out its ecosystem through external relationships, which is critical given their scale-trusted by approximately 95% of the Fortune 1000 customers. These alliances help them manage their massive physical footprint and accelerate their data center growth, which is projected to see revenue growth near 30% for the full year 2025.

Strategic Alliances with Power Supply Experts

Iron Mountain Incorporated collaborates with power supply experts to secure renewable energy and meet its aggressive sustainability targets. These alliances are key to supporting their global data center portfolio, which stood at 424 megawatts (MW) of capacity by 2025, with 96% of that capacity already leased.

The company works with power supply experts like RPD Energy and Direct Energy to develop new load-matching renewables contracts. This effort supports their commitment to decarbonization.

Key energy/sustainability partnership goals as of 2025 include:

• Achieve 90% renewable electricity corporate-wide by 2025, 15 years ahead of its RE100 commitment.
• Have long-term renewable energy contracts in place to offset 100% of projected global data center demand.
• Reduce an additional 25% of Scope 1 & 2 GHG emissions from a 2019 baseline by 2025.
• Have all new construction of multi-tenant data center facilities certified to the BREEAM Green Building Standard by 2025.

Technology Partners for the InSight DXP

The Iron Mountain InSight Digital Experience Platform (DXP) relies on a blend of proprietary development and external technology integration. In 2025, Iron Mountain added proprietary machine learning to complement leading-edge partner technologies for document recognition. This platform is designed to turn fragmented data into a strategic, active source of intelligence, with key features like agentic AI orchestrated workflows.

PwC is noted as a trusted partner for the government sector, specifically in Technology, Data & Analytics, supporting the digital transformation goals of clients using InSight DXP.

The platform's capabilities are recognized by industry analysts:

• Recognized as an Emerging Specialist in the 2025 Gartner Innovation Guide for Generative AI Knowledge Management Apps.
• Named a Disruptor in the 2025 InfoSource Global Capture & IDP Vendor Matrix.
• Ranked #9 in Everest Group Business Process Services Global Top 50.

Channel Partners and Data Center Real Estate Brokers

Iron Mountain Incorporated actively engages channel partners to accelerate growth in its data center segment, which is targeting leasing 125 MW in 2025. The Data Center Channel Partner Program offers partners, including technology solutions distributors and IT consultants, highly competitive commissions and partner incentives. The company also maintains an excellent proposition specifically for Real Estate Brokers whose customers have growing infrastructure requirements, spanning from several cabinets to an entire building.

Environmental Alliances for Sustainability Goals

Sustainability requires a collaborative approach, and Iron Mountain Incorporated works with innovative bodies to develop new sustainable customer programs like its Green Power Pass. The company is a proactive member of the Clean Energy Buyers Association (CEBA) and collaborates closely with the Future of Internet Power (FoIP) group. These alliances help Iron Mountain navigate increasing regulations for environmental performance across its portfolio, which includes more than 25 data centers across three continents.

Advisory Firms for M&A

External advisory support is utilized for strategic corporate actions. For instance, Mirus Securities represented the shareholders in the acquisition of Data Vault. This type of transaction supports Iron Mountain Incorporated's expansion into electronic data security and fortifies its existing operations, which, as of Q3 2025, generated total revenue of $1.8 billion.

The following table summarizes key partnership and scale metrics relevant to Iron Mountain Incorporated's operations as of late 2025:

Partnership/Metric Category	Partner/Entity Mentioned	Associated 2025 Metric/Value
Power/Sustainability Alliances	RPD Energy, Direct Energy	Goal to offset 100% of projected global data center demand with renewables.
Environmental Advocacy	REBA, RE100, Future of Internet Power (FoIP)	Corporate-wide renewable electricity goal of 90% by 2025.
Technology/DXP Collaboration	PwC	InSight DXP utilizes proprietary ML complementing partner technologies for document recognition.
M&A Advisory	Mirus Securities	Advised shareholders in the Data Vault acquisition.
Data Center Scale	Internal/Portfolio	Operates 424 MW of data center capacity, with 96% leased.
Financial Performance (Guidance)	Internal/Guidance	Full-year 2025 revenue guidance raised to between $6.79 billion and $6.94 billion.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Key Activities

You're looking at the core engine of Iron Mountain Incorporated (IRM) as of late 2025, which is a clear pivot from just secure storage to a diversified information management powerhouse. The Key Activities are all about managing physical and digital assets with security and compliance at the forefront.

Global Records and Information Management (RIM) and secure destruction.

This remains the bedrock. The core RIM business still accounts for over 70% of Iron Mountain Incorporated's operations, showing the sticky nature of their customer base. You see this strength reflected in the Q2 2025 Global RIM revenue hitting a record $1.32 billion. The storage rental side is growing steadily, too; Q3 2025 saw storage rental revenue increase by 9.5% organically, contributing to a total storage revenue of $1.01 billion that quarter. Honestly, the margins here are fantastic, with incremental margins for the core RIM business ranging from 70% to 80%.

Here are some key operational metrics for the physical records side:

• Record storage volume in Q3 2025: 730M+ cubic feet.
• Organic storage rental growth (Q3 2025): 9.5%.
• Expected 2025 Global RIM revenue: Midpoint of full-year guidance.

Developing and leasing high-capacity, sustainable data centers (Matterhorn strategy).

This is where the Matterhorn strategy really shows up in the numbers. The Data Center segment is a major growth driver, with Q2 2025 revenue jumping 24% year-over-year, fueled by 26% organic storage rental growth. Iron Mountain Incorporated is aggressively building out its footprint globally. As of mid-2025, they operate 424 megawatts (MW) of data center capacity, with 96% of that already leased. They have another 185 MW under construction, which is 79% pre-leased, and a massive 671 MW earmarked for future development. The data center business is projected to generate between $790 to $800 million in revenue for the full year 2025, and their EBITDA margins are now exceeding 50%, up 700 basis points year-over-year.

The strategic acquisition of Web Werks in April 2025 cemented their presence in India. This move brought Iron Mountain Incorporated's India portfolio to 14 MW across six data centers, with plans to develop three new campuses with a potential capacity of 152 MW.

Data Center Metric (Late 2025 View)	Capacity (MW)	Status/Notes
Operating Portfolio	424	96% leased as of Q2 2025.
Under Construction	185	79% pre-leased.
Held for Development	671	Part of the long-term pipeline.
Projected 2025 Revenue	N/A	Expected to be $790 to $800 million.

Digital transformation services, including scanning and workflow automation.

Digital Solutions is grouped with Asset Lifecycle Management (ALM) and Data Centers as the growth portfolio, which collectively grew more than 30% year-over-year in Q3 2025. The margins for these service-oriented businesses, including Digital Solutions, sit between 20% and 30%. A key win here is the five-year, $714 million U.S. Treasury digitization contract, which will ramp up in future years, showing Iron Mountain Incorporated's ability to land large, secure government-scale digital work.

IT Asset Disposition (ITAD) and Asset Lifecycle Management (ALM) services.

The ALM segment is moving fast, driven by decommissioning needs from data center build-outs and enterprise refresh cycles. Q3 2025 ALM revenue hit $169 million, a massive 65% increase year-over-year, with organic growth at 36%. Iron Mountain Incorporated has raised its full-year 2025 guidance for ALM revenues to $600 million. The total addressable market for enterprise ITAD is estimated at $22 billion, and Iron Mountain Incorporated's focus on secure chain-of-custody is helping them capture share. For context, in Q1 2025, total ALM revenue was $121 million, up 44% year-over-year, boosted by recent acquisitions like Wisetek and APCD contributing $18 million that quarter.

The growth in these IT-focused areas is structural:

• Enterprise IT lifecycle services (Digital, Data Center, ALM) accounted for nearly two-thirds of total growth in Q3 2025.
• ALM segment margins are in the 20% to 30% range.
• The growth portfolio is expected to be nearly 30% of total revenue exiting 2025.

Strategic M&A to expand geographic and service footprint (e.g., Web Werks in 2025).

Mergers and acquisitions are clearly a Key Activity supporting the Matterhorn strategy. The full acquisition of Web Werks in India in April 2025 followed prior investments of $150 million in 2021 and an additional $170 million in 2023, with the founders exiting after selling their stake for an amount reported as Rs 1,400 crore. Earlier in 2025, the acquisition of Premier Surplus bolstered the ALM business, which is a key area for continued selective M&A. These moves directly translate to the overall financial outlook; the full-year 2025 revenue guidance was raised to a midpoint of $6.94 billion, up 12% year-over-year at that point, showing the success of these strategic expansions.

Finance: draft 13-week cash view by Friday.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Key Resources

The foundation of Iron Mountain Incorporated's business rests on a collection of unique, high-value physical and digital assets that create a significant competitive moat.

The Global real estate portfolio is anchored by its physical storage footprint, which includes over 725 million cubic feet of storage volume across its global network. This physical infrastructure remains the bedrock, evidenced by the fact that the core Records and Information Management (RIM) business still accounts for over 70% of Iron Mountain Incorporated's operations as of late 2025.

Complementing the physical assets is a rapidly expanding digital infrastructure, with a Worldwide network of data centers capacity nearing 1.3 gigawatts when fully developed. As of mid-2025, the company operates approximately 424 megawatts (MW) of data center capacity globally, with occupancy rates near 96%. The pipeline for future capacity is substantial, reflecting aggressive capital deployment in this high-growth area.

You can see the planned data center capacity additions below, which are key to meeting projected demand:

Location	Planned Capacity Addition (MW)	Status/Context
Northern Virginia	175	Planned to come online over the next 12 to 36 months
Richmond, VA	200	Part of over 100 acres acquired for development
Manassas, VA	150 (Estimated)	Additional capacity from a 40-acre site acquisition
Chicago	36	Planned to come online over the next 12 to 36 months
Amsterdam	30	Power secured for this tight market
Madrid	75	Planned to come online over the next 12 to 36 months

The Proprietary InSight Digital Experience Platform (DXP) serves as the digital interface for content services, unifying physical records with digital assets in a single view. This platform incorporates advanced AI capabilities, including agentic AI, to automate complex, document-intensive processes. For Intelligent Document Processing (IDP) within the DXP, Iron Mountain Incorporated has achieved a >97% extraction accuracy with human-in-the-loop verification. The platform is available on the AWS, Google Cloud, and Microsoft Azure Marketplaces.

The Secure, global logistics network and auditable chain of custody are supported by Iron Mountain Incorporated's extensive customer base and operational reach. The company is trusted by more than 240,000 customers across 61 countries. This includes serving approximately 95% of the Fortune 1000. The growth businesses-data center, digital, and Asset Lifecycle Management (ALM)-collectively grew more than 30% year-over-year in Q3 2025.

Regarding Intellectual property in data security and compliance protocols, the operational excellence translates directly into financial performance metrics that underscore trust and security:

• The Data Center business achieved an EBITDA margin exceeding 50% in Q3 2025, up 700 basis points year-over-year.
• The core RIM business boasts high incremental margins, ranging from 70% to 80%.
• Full Year 2025 guidance for Adjusted EBITDA is between $2.52 billion and $2.57 billion.

Finance: review the capital expenditure plan supporting the 350+ MW of planned data center capacity in Virginia by next Tuesday.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Value Propositions

You're looking at the core value Iron Mountain Incorporated delivers, which is really about de-risking information management for the world's largest enterprises. It's a blend of physical trust and digital scale, and the numbers from late 2025 show that pivot is working.

Secure, compliant storage for physical and digital assets (trusted guardian).

The foundation remains security and compliance, which is why over 95% of the Fortune 1000 trust Iron Mountain Incorporated. This trust translates directly into financial stability. For instance, in the third quarter of 2025, the core Storage Rental Revenue hit $1.03 billion. This is the predictable base layer. The company's commitment to security is non-negotiable, underpinning every service from physical vaulting to digital asset handling.

Hybrid IT infrastructure via global, 100% matched renewable energy data centers.

The data center build-out is a massive value driver now. By mid-2025, Iron Mountain Incorporated operated 424 megawatts (MW) of data center capacity globally, with 96% of that already leased. They are aggressively building, targeting the leasing of 125 MW in 2025 alone. On the sustainability front, they have covered 100% of their global data center electricity consumption with renewable energy purchases every year since 2017. Furthermore, every new, owned, multi-tenant data center constructed by 2025 is set to achieve BREEAM Green Building Certification. The Data Center segment's EBITDA margin is now exceeding 50% as of Q3 2025, up 700 basis points year-over-year.

Digital transformation to unlock value from unstructured data (InSight DXP).

This is where the growth premium is coming from. The combined Growth Businesses-Data Center, Digital Solutions, and Asset Lifecycle Management (ALM)-grew more than 30% year-over-year in Q3 2025. While specific InSight DXP revenue isn't broken out, the Service Revenue, which captures these digital efforts, was $721 million in the third quarter. The company is consolidating 1,200 data management applications into a single data lake to improve decision-making, which is the practical application of that digital transformation effort.

End-to-end IT Asset Disposition (ITAD) for security and environmental compliance.

The Asset Lifecycle Management (ALM) business is the fastest growing piece of the puzzle. In Q2 2025, ALM revenue surged 52% year-over-year. This rapid expansion shows strong enterprise demand for secure, compliant ITAD services, which is critical for data security and environmental mandates. The margins in the Digital Solutions and ALM businesses generally sit between 20% and 30%, reflecting the value added in secure decommissioning and remarketing.

Predictable, recurring storage revenue model for financial stability.

The stability comes from the sheer scale and high margins of the legacy business, which funds the growth investments. The core Global Records and Information Management (RIM) business still accounts for over 70% of Iron Mountain Incorporated's operations. This segment boasts high incremental margins, ranging from 70% to 80%. This recurring, high-margin base supports the company's financial footing, evidenced by the record Q3 2025 Adjusted EBITDA of $660 million and the subsequent 10% increase in the quarterly dividend per share.

Here's a quick look at the revenue segmentation based on the latest reported quarter:

Revenue Component	Q3 2025 Amount	Year-over-Year Growth (Reported)
Total Reported Revenue	$1.8 billion	12.6%
Storage Rental Revenue (RIM Base)	$1.03 billion	10%
Service Revenue (Digital/Growth)	$721 million	16%
Data Center Segment Revenue (Projected FY 2025)	$790 to $800 million	Targeting 25% growth in 2026

The full-year 2025 revenue guidance is set between $6.79 billion and $6.94 billion, showing management's confidence in sustaining this dual-engine growth strategy.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Customer Relationships

You're managing relationships with a massive, diverse base, so the approach has to be layered, from high-touch for complex deals to scalable digital support for routine needs. Iron Mountain Incorporated serves more than 240,000 customers across 61 countries. This scale necessitates a clear segmentation of relationship management.

Dedicated direct sales force for customized, complex solutions.

For the most complex, high-value engagements-like large-scale data center deployments or enterprise-wide digital transformation-the direct sales team is key. This team focuses on securing relationships with major enterprises, evidenced by Iron Mountain Incorporated serving approximately 95% of the Fortune 1000. These are the contracts that drive the significant service revenue growth, which saw an increase of 15.3% year-over-year in Q3 2025.

Account management for long-term, high-retention storage contracts.

The core of the relationship strategy is locking in long-term value from the physical storage base. The overall customer retention rate is approximately ~98%. For the high-growth Data Center segment, the churn rate is exceptionally low at 0.5%. This stickiness supports the steady revenue from storage rentals, which grew 9.5% year-over-year in Q3 2025. The commitment to shareholder returns, including a 10% increase in the quarterly cash dividend per share based on strong AFFO growth, reinforces the stability these long-term contracts provide.

Here's a quick look at the scale and momentum driving these customer relationships as of late 2025:

Metric	Value/Rate	Context
Total Customer Base	~240,000	Global reach across 61 countries
Fortune 1000 Penetration	~95%	Indicates deep enterprise relationship penetration
Overall Customer Retention	~98%	Reflects high contract durability
Data Center Churn Rate	0.5%	Exceptional retention in the high-growth segment
Growth Businesses Y/Y Growth (Q3 2025)	>30%	Data Center, Digital, and ALM collective growth
Projected Full Year 2025 Revenue	$6,790 - $6,940 million	Midpoint implies ~12% growth over 2024

Green Power Pass (GPP) program for data center customers to meet ESG targets.

For data center clients, Iron Mountain Incorporated directly addresses Environmental, Social, and Governance (ESG) reporting needs through the Green Power Pass (GPP). This program allows customers to include the power they consume at Iron Mountain Incorporated data centers as green power in their CDP, RE100, GRI, or other sustainability reporting. The underlying infrastructure has been powered by 100% renewable electricity since 2017. Early adopters recognized in June 2019 included major names like The Boeing Company, Credit Suisse, and Goldman Sachs. This offering turns a necessary operational cost into a verifiable sustainability achievement for the customer.

High-touch, consultative approach for digital transformation projects.

The consultative relationship style is essential for the rapidly expanding digital and Asset Lifecycle Management (ALM) segments. The ALM business saw organic growth of 42% in Q2 2025, and the Data Center segment is expected to see nearly 30% revenue growth in 2025. The launch of the Insight DXP 2.0 platform is a concrete example of a complex, high-touch digital solution being rolled out to customers. These growth rates suggest successful consultative selling around complex IT asset disposition and cloud infrastructure needs.

Online portals and dedicated support for service inquiries.

To manage the sheer volume of ~240,000 customers efficiently, scalable digital interfaces are necessary for day-to-day service. While specific portal usage statistics aren't public, the need is clear: supporting a customer base this large requires robust online self-service options for things like inventory checks or basic service requests, freeing up the specialized account managers for the complex, high-value strategic discussions. The company reported record quarterly Adjusted EBITDA of $660 million in Q3 2025, showing operational leverage that must include efficient customer service delivery.

Finance: model the impact of a 1% increase in overall customer retention on TTM revenue by end of Q4 2025.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Channels

You're looking at how Iron Mountain Incorporated (IRM) gets its services-from secure storage to hyperscale cloud capacity-into the hands of its customers. It's a multi-pronged approach, blending a massive physical footprint with sophisticated digital delivery, which is key to supporting their growth in data centers and Asset Lifecycle Management (ALM).

The direct sales effort is clearly aimed at the top tier of the market. Iron Mountain Incorporated is trusted by more than 240,000 customers across 61 countries, including approximately 95% of the Fortune 1000. This deep penetration into large enterprises is a primary channel for cross-selling their expanding digital and data center services.

The physical backbone remains substantial. While the prompt mentioned over 300 centers, the latest available figure shows a much larger scale for their records and information management network. They maintain a global network of 1,350 locations as of 2024. This physical presence supports their core storage business and acts as a secure touchpoint for digital service integration.

For the high-growth Data Center segment, the channel is direct, focusing on securing large, long-term commitments. By 2025, Iron Mountain Incorporated operates a global data center portfolio totaling 1.3GW spanning three continents. They are actively executing on this channel, projecting to lease 125 MW in 2025 alone. This capacity is distributed across 11 strategic markets in North America, plus key sites in Asia Pacific like Singapore and India.

Digital delivery is increasingly channeled through their proprietary platform. The Iron Mountain InSight Digital Experience Platform (DXP) is the interface for accessing and managing both physical and digital assets. This platform incorporates AI agents and no-code workflow orchestration to automate processes. For example, their Intelligent Document Processing (IDP) component achieves an impressive 97% average data extraction accuracy. Recognition for this channel includes being named an Emerging Specialist in the AI Knowledge Management Apps/General Productivity category of the Gartner® Innovation Guide for Generative AI Technologies report published in November 2025.

Finally, Iron Mountain Incorporated uses strategic partnerships to expand reach, particularly in the high-growth Asset Lifecycle Management (ALM) and Data Center spaces. They have a strategic partnership with Ooredoo Group in the Middle East and North Africa (MENA) region. The ALM business, which benefits from these channels, saw organic revenue growth of 22% in Q1 2025, following a 119% revenue increase in 2024 driven by both organic growth and acquisitions.

Here's a quick look at the scale of the physical and digital channels as of late 2025 reporting:

Channel Component	Metric / Scale (Latest Available Data)	Context / Year
Records & Information Management Centers	1,350 locations	2024
Data Center Capacity (Operational)	424 megawatts (MW)	As of 2025
Data Center Capacity (Under Construction)	185 MW (with 79% pre-leased)	As of 2025
Data Center Leasing Target	125 MW	Projected for 2025
Digital Platform Recognition	Ranked #1 in Tech Top 50's AI Implementation category	Mass Technology Leadership Council
Digital Platform Accuracy	97% average data extraction accuracy (IDP component)	As of 2025
Customer Base Reach	Trusted by approximately 95% of the Fortune 1000	As of 2025

The growth businesses-Data Center, Digital, and ALM-collectively grew more than 30% year-over-year in Q3 2025. Finance: draft 13-week cash view by Friday.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Customer Segments

You're looking at the core of Iron Mountain Incorporated's business-who trusts them with their most critical information and assets as of late 2025. Honestly, the customer list reads like a who's who of the global economy.

The foundation of Iron Mountain Incorporated's customer base is built on serving the largest entities in the world. They are trusted by approximately 95% of the Fortune 1000 companies. This deep penetration means that when you look at major US corporations, Iron Mountain Incorporated is likely already embedded in their compliance and records management infrastructure. This relationship is incredibly sticky; for instance, the overall customer retention rate is reported at approximately ~98%.

The customer base is geographically diverse, spanning 61 countries globally. This global footprint is key for multinational corporations needing consistent, secure service delivery across borders. The total customer count is substantial, standing at more than 240,000 customers served.

A significant portion of the demand comes from sectors under intense regulatory scrutiny. Iron Mountain Incorporated specifically caters to:

• Healthcare organizations requiring strict data governance.
• Financial services firms managing long-term transaction records.
• Legal entities needing secure document preservation.
• Government agencies, evidenced by a recent 5-year, up to $714 million contract with the U.S. Treasury Department for digitization services.

The growth engine is clearly pulling in the digital infrastructure players. Hyperscale cloud providers are a major focus, particularly within the Asset Lifecycle Management (ALM) and Data Center segments. The total addressable market (TAM) for ALM is estimated at $30 billion, with the hyperscale portion representing about 25% of that market. Iron Mountain Incorporated's data center portfolio is massive, with 450 MW operating and 202 MW under construction as of June 30, 2025. The growth in this area is explosive; Data Center revenue growth in Q3 2025 was 33% year-over-year.

While the enterprise focus is clear, the sheer volume of the total customer base indicates significant engagement with smaller entities too. The mid-market and small businesses rely on Iron Mountain Incorporated for core secure storage and destruction services. The Global Records and Information Management (RIM) segment, which includes physical records storage, is expected to generate approximately $5.3 billion in revenue in 2025, supported by a highly predictable stream where the average storage duration per box is about 14.5 years.

Here's a look at the scale of the data center customer segment, which is a key driver for the hyperscale and large enterprise IT asset customers:

Data Center Metric (as of 6/30/25)	Amount
Operating Portfolio Capacity	450 MW
Under Construction Capacity	202 MW
Held for Development Capacity	628 MW
Total Developable Capacity	1.3 GW

The Asset Lifecycle Management (ALM) business, which serves both enterprise and hyperscale customers needing to retire IT gear, is also a major segment. This business alone is projected to deliver about $600 million in revenue for 2025.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Cost Structure

The Cost Structure for Iron Mountain Incorporated is heavily weighted toward maintaining and expanding its vast physical and digital infrastructure footprint. This is a capital-intensive model, characterized by significant, non-negotiable fixed costs.

The foundation of the cost base rests on high fixed costs from owning and operating global real estate, which includes the secure storage facilities, and the rapidly expanding data center portfolio. These costs include property taxes, insurance, and long-term lease commitments that persist regardless of short-term utilization fluctuations.

Capital investment is a major component, reflecting the aggressive growth strategy, particularly in the Data Center and Asset Lifecycle Management (ALM) segments. For the six months ended June 30, 2025, cash paid for capital expenditures reached $1,231.5 million. This follows a year where capital expenditures for fiscal year 2024 totaled $1.792 billion.

Operating expenses show the scale of the business activity. Cost of Sales (excluding Depreciation and Amortization) for the first half of 2025 was reported at $1.465 billion. Selling, General, and Administrative (SG&A) expenses for the trailing twelve months ending June 30, 2025, were $1.395 billion, with the third quarter 2025 figure alone being $1,055,441 thousand.

Financing costs are also a substantial, recurring expense due to the debt load required to fund real estate and CapEx. Net interest expense for the full fiscal year 2025 is expected to be around $609.541 million, based on updated guidance.

Here's a breakdown of the key cost components based on recent reporting periods:

Cost Component	Period/Context	Amount
Growth Capital Expenditures (Planned)	FY 2025 Plan (as per outline)	$1.8 billion
Capital Expenditures Paid	Six Months Ended June 30, 2025	$1,231.5 million
Cost of Sales (excluding D&A)	First Half of 2025 (as per outline)	$1.465 billion
Selling, General, and Administrative (SG&A)	Q2 2025 Year-to-Date (as per outline)	$720 million
Selling, General, and Administrative (SG&A)	Q3 2025 Actual	$1,055,441 thousand
Net Interest Expense	FY 2025 Guidance	$609.541 million
Net Interest Expense	Six Months Ended June 30, 2025	$399.8 million

The operational costs are further detailed by segment focus:

• Fixed costs are tied to the physical storage footprint, which is Iron Mountain Incorporated's historical core.
• Growth CapEx is heavily directed toward the Data Center business to meet demand.
• The company is focused on driving operating leverage to manage the high fixed base.
• SG&A includes costs associated with global sales and administrative functions supporting over 240,000 customers.

Finance: review the Q3 2025 actual SG&A against the Q2 YTD estimate by end of next week.

Iron Mountain Incorporated (IRM) - Canvas Business Model: Revenue Streams

You're looking at how Iron Mountain Incorporated generates its top line, and honestly, it's a story of a stable core supporting high-velocity growth engines. The revenue streams are clearly segmented, which helps you model the predictability versus the upside potential.

Storage Rental Revenue, the stable core, with Q3 2025 at $1.03 billion. This is the bedrock, the physical records management business that has delivered over 35 consecutive years of organic revenue growth. It's the predictable, high-margin foundation of the whole operation.

Service Revenue from RIM, Digital, and ALM, with Q3 2025 at $721 million. This segment is growing faster than the core storage rental, showing that customers are increasingly paying for the movement, management, and disposition of their data, not just the static storage of physical assets. Service revenue grew 16% year-over-year in Q3 2025.

Asset Lifecycle Management (ALM) Revenue, guided to $600 million for FY2025. This is a key growth driver, fueled by IT asset disposition and data center decommissioning. Management projected the ALM business to generate approximately $575 million in revenue for the full year 2025, with the enterprise component making up about 60% of that total.

Data Center Colocation Revenue, a high-growth segment. This area is seeing massive expansion, with projections for the segment to generate between $790 million and $800 million in revenue for the full year 2025. The momentum here is clear, with Q4 growth expected to be in excess of 30%.

Recurring revenue from long-term contracts, providing high predictability. This is built into the structure of the business, especially in the Data Center segment where contracts are fixed over a set period. For instance, the existing U.S. Department of the Treasury contract offers long-term revenue stability, and the company targets approximately 75% of its debt portfolio to be fixed with respect to interest rates, mirroring the stability sought in its revenue base.

Here's a quick look at the reported Q3 2025 revenue breakdown:

Revenue Stream Component	Q3 2025 Reported Amount	Year-over-Year Growth (Q3 2025)
Storage Rental Revenue	$1.03 billion	9.5%
Service Revenue	$721 million	15.3%
Total Reported Revenue	$1.8 billion	12.6%
Projected Full Year 2025 ALM Revenue	$575 million	N/A

The overall revenue mix is shifting, which is what you want to see in a company managing a transition. The growth businesses, which include Data Center, Digital Solutions, and ALM, are estimated to reach 28% of total revenue exiting 2025, up from 15% in 2021.

You can see the stability and growth components clearly in these operational metrics:

• The Records and Information Management (RIM) business has 35+ consecutive years of organic revenue growth.
• The Data Center portfolio has 96% occupancy on its operating capacity of 452 MW as of Q3 2025.
• The company serves approximately 95% of the Fortune 1000.
• The Q3 2025 Adjusted EBITDA margin reached 37.6%, expanding by 110 basis points year-over-year.

Finance: draft 13-week cash view by Friday.