Pan-Indian expansion will provide Iron Mountain
Data Center customers access to three rapidly growing Indian
markets including the 2nd most active peering location in
Mumbai
Iron Mountain Incorporated (NYSE:IRM), the
storage and information management services company, today
announced that it has entered into an agreement to form a joint
venture with Web Werks, one of India’s top colocation data center
providers. Iron Mountain expects to invest $150 million over the
next two years, and anticipates being the majority investor in the
venture after the investment period. The first phase of the
transaction is expected to close within the next 90 days subject to
customary closing conditions.
Web Werks operates three Tier 3, carrier-neutral data centers,
in Mumbai, Pune and Delhi NCR. This investment enables Web Werks to
immediately expand its operations in its three existing markets and
subsequently expand into Bangalore, Hyderabad and Chennai. Iron
Mountain Data Centers is making this investment to support its
existing hyperscale, network, content and enterprise customers
looking to expand and scale in the rapidly growing pan-India
region.
With a combined footprint of 225,000 square feet, Web Werks
houses 6 worldwide Points of Presence (POPs), provides 4 megawatts
(MW) of capacity, supports 6,000+ servers and supports 850+
clients. Web Werks also provides access to a robust, neutral
interconnection ecosystem of carrier, content and cloud providers
including over 160 Internet Service Providers (ISP) and 6 Internet
Exchanges. As market leaders in hyper-connected data centers, Web
Werks supports a broad base of well-known brands including:
Enterprises, Banking, Financial Services, Insurance (BFSI), and
Small and Medium Enterprises (SMEs) who require the ability to
efficiently and effectively scale their businesses.
“This investment reflects Iron Mountain’s commitment to invest
in high growth, good return global markets to continue to meet our
customers’ requirements. The India data center market is projected
to grow rapidly in the coming years and we are excited to be an
early mover into a market where the demand is high and the supply
is low,” stated Mark Kidd, Executive Vice President & General
Manager, Iron Mountain Data Centers. “Web Werks has a highly
respected and seasoned leadership team and we are delighted to not
only support their continued growth and success, but also to
provide our existing Iron Mountain data center customers access to
this growing and thriving market.”
India is the second-largest telecommunications market in the
world. According to a recent report by JLL, India’s Colocation data
center market size is expected to grow from 375MW in H1 2020 to
1,078MW by 2025, registering a CAGR of 21%. According to the
December 2020, Global Data Centre Colocation & Interconnection
report by Structure Research (SR), the Asia Pacific region will
account for half of the global colocation market by 2025 driven by
large emerging markets like India. The SR report also recognizes
Mumbai and Pune as key opportunity markets in India with combined
projected MW of built-out critical IT load capacity growth to reach
over 470MW by 2025. “India provides an important next step in
expanding our Asia Pacific footprint,” stated Michael Goh, General
Manager Asia Pacific at Iron Mountain Data Centers. “We have seen
very strong regional demand from our global customers following the
grand opening of our Singapore data center, SIN-1, in 2019.”
“Joining forces with the Iron Mountain Data Center team will
further solidify Web Werk’s leadership position in the pan-India
region and among the broader set of global customers,” stated
Nikhil Rathi, CEO, Web Werks. “Web Werks and Iron Mountain Data
Centers are fully committed and aligned to grow and scale in order
to meet the digital transformation and interconnection needs of our
customers. The Joint Venture is expected to be among the select few
data center operators with assets across all major cities and also
have both Hyperscale and dense interconnection expertise. We look
forward to the collaboration and continued success.”
Deutsche Bank acted as the exclusive financial advisor to Web
Werks on the fund raise. Khaitan & Co and EY acted as the
exclusive advisors to Web Werks respectively.
Cyril Amarchand Mangaldas and PWC India acted as advisors to
Iron Mountain on this transaction. JLL acted as an introducing
partner to both parties.
For more information please visit
www.ironmountain.com/datacenters.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the
global leader for storage and information management services.
Trusted by more than 225,000 organizations around the world, and
with a real estate network of nearly 93 million square feet across
approximately 1,450 facilities in 56 countries, Iron Mountain
stores and protects billions of valued assets, including critical
business information, highly sensitive data, and cultural and
historical artifacts. Providing solutions that include secure
records storage, information management, digital transformation,
secure destruction, as well as data centers, cloud services and art
storage and logistics, Iron Mountain helps customers lower cost and
risk, comply with regulations, recover from disaster, and enable a
more digital way of working. Visit www.ironmountain.com for more
information.
About Web Werks
With a combined footprint capability of 225,000 square feet, Web
Werks operates 3 strategically located Data centers in Mumbai, Pune
and Delhi NCR along with 3 worldwide Points of Presence (POPs). Web
Werks currently operates 4 megawatts (MW) of capacity supporting
6,000+ servers running 850 clients. Web Werks through its Data
centers also provides access to a robust, neutral interconnection
ecosystem of carrier, content and cloud providers including over
160 Internet Service Providers (ISP) and 5 Internet Exchanges. As
market leaders in hyper connected infrastructure, Web Werks
supports a broad base of well-known brands from Enterprise, BFSI,
SMEs and OTTs who require the ability to efficiently and
effectively scale their online businesses. For more information
please visit www.webwerks.com.
Forward Looking
Statement
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995: This release contains certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other securities laws and is subject to the
safe-harbor created by such Act. Forward-looking statements
include, but are not, limited to the anticipated closing of the
transaction, the timing and size of additional investments, Iron
Mountain's expected ownership stake and the expected value of the
joint venture and future expansion growth in the region. These
forward-looking statements are subject to various known and unknown
risks, uncertainties and other factors. When Iron Mountain uses
words such as "believes," "expects," "anticipates," "estimates" or
similar expressions, it is making forward-looking statements.
Although Iron Mountain believes that its forward-looking statements
are based on reasonable assumptions, Iron Mountain's expected
results may not be achieved, and actual results may differ
materially from its expectations. In addition, important factors
that could cause actual results to differ from Iron Mountain's
expectations include, among others Iron Mountain's ability to close
the proposed transaction in accordance with its terms, the risk
that the conditions to completing the transaction will not be
satisfied on a timely basis or at all and risks that we may not
through the joint venture be able to achieve the expectations for
the business and value based on challenges with the operations,
risks in the market or gain the ownership or control we expect.
Other risks described more fully in our filings with the Securities
and Exchange Commission, including under the caption "Risk Factors"
in our periodic reports or incorporated therein. You should not
rely upon forward-looking statements except as statements of Iron
Mountain's present intentions and of its present expectations,
which may or may not occur. Except as required by law, Iron
Mountain undertakes no obligation to release publicly the result of
any revision to these forward-looking statements that may be made
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
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version on businesswire.com: https://www.businesswire.com/news/home/20210224005109/en/
Investor Relations: Greer Aviv Senior Vice President,
Investor Relations +1 (617) 535-2887
Greer.Aviv@ironmountain.com
Nathan McCurren Director, Investor Relations +1 (617)
535-2997 Nathan.McCurren@ironmountain.com
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