Manassas Corporate Center, where another data center is being developed.

MANASSAS, VA–Earlier this year Boston-based Iron Mountain, a document storage and data center REIT, announced it would build its third data center complex in Prince William County. Its early ballpark investment was $350 million for a three-building complex on 83 acres at 11650 Hayden Rd., which would begin to deliver in spring 2017.

Its plans have adjusted somewhat, based on the REIT's recent earnings report. The total investment amount is now estimated to be $441 million for a four-building complex, according to comments CFO Stuart Brown made during the earnings call. Right now, he said, Iron Mountain “is in the process of finalizing a development agreement with a partner to start construction on the first building in the fourth quarter.”

This first building is going to take two to three years to stabilize after construction, Brown said. Iron Mountain structured the first agreement to mitigate some of the development risk, “so it will be through a development partner of ours and then we anticipate buying it once stabilized,” he said.

There is a purchase option built into the agreement and Iron Mountain anticipates buying it. The following three buildings will take another five to six to seven years to build out. Those buildings will be either developed by the REIT or it might opt for another development partnership.

The bottom line according to Brown: the $440 million total investment will $70 million of revenue, over $70 million of revenue off of a base today of $25 million. “So really multiplying our business substantially and really getting us into the data center game.”

Instant Insights /

Iron Mountain Offers More Details on Its $441M Data Center in Northern Virginia

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