Iron Mountain Inc at RBC Capital Markets Global Communications Infrastructure Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : Can I ask some questions about kind of the core RIM business, document storage, and then pivot to data centers, and then pivot to asset lifecycle management? If there are questions at the end, we'll have time for maybe one or two. But focusing on kind of the core business, maybe update us on how you've been able to maintain the very strong pricing economics within RIM and maybe unpack different sectors or different geographies where you see storage volumes shifting in any notably different way.

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : Yes, well said. And then maybe at a very high level, I think at the corporate level, you talked about a 47% flow-through rate in terms of incremental EBITDA over incremental revenue. And maybe talk about what sort of sustainable level we could see in terms of flow-through margins going forward.

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : You hit on data centers and ALMs, so let's kind of dive into data centers a bit. And I think you've mentioned in the fairly recent past that discussions in the first half of the year, broadly speaking, were heavily focused on large campuses supporting AI and large language models. That's clearly not kind of your sweet spot, so to speak. Maybe elaborate a bit about how this shift has affected your pace of leasing and current buildouts and what gives you confidence around the leasing pickup going forward.

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : In terms of the velocity, so a lot of discussions, are you finding at this point in 2025 versus, say, a year ago at this conference, decision cycles around large commitments on the data center side lengthening, shortening? What's the level of urgency? How would you characterize that amongst your customers?

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : So leasing aside, you have a lot of book-not-build. Barry, can you maybe talk us through the earnings growth dynamic in terms of the, as you deliver and customers move in, how much of AFFO growth might be driven by that sort of dynamic on the data center side versus RIM versus ALM?

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : So we'll do a little bit of a sidebar then on ALM, and then we'll pivot back to data centers. But maybe combining the two, so you've got hyperscale decommissioning, and we haven't yet seen the AI refresh cycle for GPUs in any meaningful way. Is your ALM segment mature enough to have a view as to, does it make a difference whether you're taking stuff out of somebody else's data centers or your own data centers? Is there sort of a home field advantage to think about or too soon to say?

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : On the earnings growth, you talked about a lot of the factors that drive that. One thing I don't think I heard you say was renewal spread. So pricing 10 years ago on wholesale hyperscale leases was going down year on year, and now we're kind of at the stage where pricing's been going up pretty much since 2021. So how much of the earnings calculus do you attribute or the earnings growth to maybe renewal spreads being favorable?

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : Power delivery, so you talked about Madrid, Amsterdam, Richmond, Northern Virginia, Chicago. And each jurisdiction is different, but secure power, what are the challenges around getting more power in those and other of what you see as your key growth markets?

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : Last question from me, and we might have one or two -- time for one or two from the audience, but just kind of capital intensity, a lot of it is dedicated towards meeting data center demand. How can you maintain the existing or even potentially higher levels of CapEx? What's kind of your funding strategy around that?

Question: Jonathan Atkin - RBC Capital Markets Inc - Analyst : Actually, so one more on the government contract around Treasury. What is or is not in your guide assumptions for future growth in terms of that contract?