IRM · 10-Q · 2026Q2 · Full report
Data Center Joint Venture
IRON MOUNTAIN INC · 2026-08-05 · Importance 40 · Surprise 42 · In source text
During the quarter ended June 30, 2026, Iron Mountain entered into an agreement with a partner to form Iron Mountain Data Centers Virginia 9 JV, LP. The transaction produced approximately $49.9 million of noncontrolling interests on the June 30, 2026 condensed consolidated balance sheet. The related Virginia 9 financing permits up to $298.0 million of term-loan borrowings and had $29.6 million outstanding at June 30, 2026. Virginia 9 term loans bear interest at SOFR plus 3.00% and mature June 9, 2029, subject to two one-year extension options.
Key facts
- Entered into agreement during quarter ended June 30, 2026 to form Iron Mountain Data Centers Virginia 9 JV, LP joint venture, resulting in Noncontrolling interests of approximately $49.9 million as of June 30, 2026. source
- Virginia 9 Credit Agreement allows borrowing up to $298.0 million in aggregate term loans; Virginia 9 Term Loans bear interest at SOFR plus 3.00%; commitment fee on unused commitments 0.90%; scheduled to mature June 9, 2029 with two one-year extension options; $29.6 million outstanding as of June 30, 2026 and interest rate in effect was 6.9%. source
- Virginia 3 Term Loans due 2031 original principal balance: $433.0 million; scheduled to mature January 9, 2031; bear interest at weighted average rate of 6.3%; total net proceeds used to repay Virginia 3 Term Loans due 2026 and portion of Revolving Credit Facility borrowings. source
- Adjustments to calculations under the Credit Agreement can include non-cash charges and expected benefits associated with completed acquisitions, certain executed lease agreements associated with our data center business that have yet to commence and restructuring and other strategic initiatives. source
- The carrying value of the unconsolidated Frankfurt JV as of June 30, 2026 is $78,209 (in thousands). source
- Our joint venture with AGC Equity Partners (the "Frankfurt JV") is accounted for as an equity method investment and presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -2.0% | Virginia 3 Term Loans due 2031 original principal balance: $433.0 million; scheduled to mature January 9, 2031; bear interest at weighted… |
| liability | negative | realized | — | Virginia 9 Credit Agreement allows borrowing up to $298.0 million in aggregate term loans; Virginia 9 Term Loans bear interest at SOFR… |
| operating_income | mixed | contingent | — | Adjustments to calculations under the Credit Agreement can include non-cash charges and expected benefits associated with completed… |