IO Data Centers will be acquired for $1.3 billion

Above: A rendering of IO's planned Phoenix campus expansion that was included in the invitation to the groundbreaking ceremony. It was postponed due to Iron Mountain's plans to acquire IO for $1.3 billion. (Provided photo) Business News | 13 Dec, 2017 |

Phoenix-based IO Data Centers will be acquired by Boston-based Iron Mountain, an information management services company, for $1.3 billion, according to an announcement earlier this week.  

IO Data Centers has a large presence in the Phoenix Metropolitan area, with a campus located in Phoenix and a data center in Scottsdale. IO Data Centers was planning to expand its Phoenix campus this week, according to an invitation sent to AZ Big Media for a groundbreaking ceremony. 

The campus groundbreaking, which was set to begin a nine-acre expansion that would have doubled the size of IO’s flagship Phoenix campus, has been postponed until early 2018, according to a statement from a spokesperson for IO.  

“Iron Mountain just announced that it is acquiring IO Data Centers and will accelerate the expansion of capacity in Phoenix, enhancing its ability to support the needs of the enterprises and cloud providers,” the spokesperson for IO wrote in an email.  

The planned expansion was meant to support IO’s customer demand, and assist the Phoenix facility to be one of the “most connected cloud data centers in the nation.”  

IO’s Phoenix campus is located near 48th Street and the Loop 202, and its Scottsdale data center is near Princess Drive and the Loop 101. IO also has data centers in Ohio and New Jersey, and another facility in Singapore.  

Iron Mountain is an information management firm, which has been around since 1951. Iron Mountain helps companies manage sensitive information, providing record storing services, and secure destruction of records.  

According to a report by TechCrunch, Iron Mountain has been expanding its business to include more ownership of data centers, since the company has been known more for physical storage of information.  

In a press release about the acquisition, Iron Mountain states that the acquisition of IO will add 62 megawatts of existing capacity, with the potential to add 77 megawatts in Phoenix and New Jersey, possibly hinting to IO’s expansion plans in Phoenix that have been pushed back.  

The total acquisition of IO is for $1.315 billion, with the possibility of an additional $60 million being thrown in contingent on future performance and “customary adjustments.”  

“We continue to experience strong demand and growth in our data center business, with a focus on establishing a presence in the largest global markets for colocation and enterprise customers.  Our strategy includes organic expansion within our existing footprint, greenfield development in the largest U.S. markets such as our newly opened campus in Northern Virginia, and targeted acquisitions of properties with customer profiles that closely mirror our own,” said Iron Mountain President and CEO William L. Meaney. 

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