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Calcium DC sells $90m site to Iron Mountain

Facility adds to IRM’s expanding portfolio of facilities which has recently expanded to India under a JV with Web Werks.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

July 13, 2021 | 4:07 PM BST

Iron Mountain Incorporated (NYSE: IRM) said it has entered into an agreement to acquire a data centre in Frankfurt from Singaporean conglomerate Keppel Corp (SGX: BN4).

The Keppel DC Frankfurt 1 data centre is a two-story, 20,000 square meter colocation data centre site on freehold land in the Am Martinszehnten Industrial Park, which is in close proximity to the city centre and Frankfurt Airport.

The €76 million (US$90 million) cash consideration is expected to close within the next 90 days subject to customary closing conditions.

The site was held under Calcium DC, a 60-40 joint venture between Alpha DC Fund and Keppel Data Centres Holding, and divested through its indirect wholly-owned subsidiaries Graphite (DC) BV and Keppel Vector (DC) GmbH.

The facility currently has 2.6 MW of leased capacity and 8 MW of capacity available for retail colocation customers with the option to expand in the future to add Edge computing at the premises. The data centre also has access to DE-CIX, one of the world’s largest internet exchanges.

Keppel Corp added that the consideration was arrived at on a willing-buyer, willing-seller basis, taking into account the book value of the property as at 31 December 2020 of €63 million (approximately $74.4 million).

Mark Kidd, EVP and GM of Data Centers at Iron Mountain, said: “This latest investment in one of the most sought-after European markets further solidifies our commitment to investing in the global markets where our customers need us.

“As a leading global data centre provider, we are pleased to continue to meet the key growth milestones that this acquisition, and the recently announced expansion in London, represent.”

The acquisition expands Iron Mountain’s presence in the Frankfurt market, which includes a 27 MW pre-leased facility in Frankfurt (FRA-1).

In addition to the agreement to acquire the Frankfurt data centre, Iron Mountain recently announced further expansion in Europe with a 27 MW data centre build in London (LON-2), in addition to 9 MW of leasable capacity at its LON-1 data centre.

The company has also announced a joint venture with India data centre provider Web Werks, adding three Tier 3, carrier-neutral data centres in Mumbai, Pune and Delhi to their global footprint.

Eric Boonstra, VP and GM, Europe at Iron Mountain Data Centers, said: “We are thrilled to be adding an additional data centre in Frankfurt to our global platform as it will meet the high demand we are seeing from our enterprise, edge and hyperscale customers in the Frankfurt market.”

Iron Mountain’s global data centre platform consists of 15 operational facilities across 13 markets and three continents.

Including the new Frankfurt data centre and the recently closed Web Werks joint venture, Iron Mountain’s data centre platform can support nearly 460 MW of IT capacity at full build-out, including leasable capacity, land, and buildings held for future development.

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João Marques Lima

Founder and Editor, The Tech Capital

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