The major companies in colocationHousing facilities are a type of data center and cloud infrastructure services have reported their financial results for the fourth quarter of 2024, confirming sustained growth in the sector. Digital Realty, Equinix, and Iron Mountain reported a positive year, driven by the increased demand for computing capacity, the growth of artificial intelligence, and the expansion of cloud services.
Digital Realty: Aggressive Expansion and Focus on AI
Digital Realty closed the last quarter of 2024 with revenues of $1.4 billion, representing a year-over-year growth of 5%. Despite a slight decline of 1% in adjusted EBITDA compared to the previous quarter, the company was able to maintain solid expansion thanks to new acquisitions and strategic contracts.
Among the company’s notable milestones for the quarter are:
- Land purchase for a new 400MW campus in Charlotte, North Carolina, for $160 million.
- Expansion in Madrid, Spain, with the purchase of three acres for 25 million euros, intended for a new 24MW campus (MAD5).
- Sale of assets in the U.S. and Europe, including three data centers in San Jose (California), Trumbull (Connecticut), and Redhill (United Kingdom).
- Solar agreement in Illinois, acquiring 19.8 MWdc of energy through the Illinois Shines program.
- Incorporation of Tenstorrent, an AI chip startup, as a client, strengthening its position in the AI infrastructure market.
Digital Realty continues to invest in its interconnection data center strategy, with new contracts totaling $100 million in reservations and $250 million in lease renewals. Its focus on artificial intelligence and cloud services allows it to anticipate stable growth in 2025.
Equinix: Aiming for $9 Billion in Revenue by 2025
Equinix closed the fourth quarter of 2024 with $2.261 billion in revenue, solidifying its position as the largest data center operator in the world. Its adjusted EBITDA reached $1.012 billion, while the annual total surpassed $8.748 billion, with a year-over-year growth of 7%.
Among its key advancements in the quarter are:
- Expansion of the xScale program, signing contracts for 31MW in its Paris 12 and 13 campuses, bringing its total xScale capacity to over 400MW globally.
- New expansions approved in strategic markets, including Bogotá (550 racks), Istanbul (1,325 racks), Tokyo (1,000 racks), and Johor (1,125 racks), with deliveries expected between 2026 and 2027.
- Closure of three data centers in Atlanta, in line with its portfolio optimization strategy.
- Restructuring plan, with a financial impact of $27 million, plus additional costs from shutting down its bare metal server service and a $160 million asset depreciation.
For 2025, Equinix anticipates exceeding $9 billion in revenue, supported by the growing demand for cloud infrastructure and the rise of artificial intelligence models.
Iron Mountain: 25% Growth in Data Center Revenue
Iron Mountain continues to consolidate its data center business, with annual revenues of $620 million in this division, a 25% increase compared to 2023. In the fourth quarter, the company generated $170.1 million in this segment, with an adjusted EBITDA of $88.13 million.
Key milestones for the quarter include:
- Signing 71 new lease contracts, totaling 9.6MW, in addition to 216 renewals that added 5.9MW.
- Commitment to long-term contracts, prioritizing profitability over the volume of new contracts. The company opted to reject a 130MW deal that did not meet its profitability expectations.
- Outlook for 2025, with a forecast of 125MW in new lease contracts, driven by the increasing demand for colocation and the need for infrastructure for AI models.
Iron Mountain continues to pursue its Project Matterhorn strategy, with a vision of sustained growth across all its segments and strengthening its offering in data centers as a key pillar of its business.
Trends and Forecasts for 2025
The data center sector continues to expand, with growing demand for infrastructure for artificial intelligence and cloud services. Key trends that will shape 2025 include:
- Expansion in emerging markets: Latin America, Eastern Europe, and Southeast Asia will see increased investment in new data centers.
- Sustainability and renewable energies: Companies like Digital Realty and Equinix are signing clean energy agreements to reduce their carbon footprint.
- Surge in colocation for artificial intelligence: The growing demand for specialized chips and training generative models is driving investments in high-capacity data centers.
- Market consolidation: Competition among hyperscalers and colocation operators continues to intensify, with strategic acquisitions and mergers.
With these results, the data center sector is entering 2025 with a solid foundation to continue its global expansion, with artificial intelligence and the cloud as the main growth drivers.