10 Most Oversold Data Center Stocks to Buy According to Analysts

5. Iron Mountain Inc. (NYSE:IRM)

YTD returns: -13%

Potential Upside: 39%

Number of Hedge Fund Holders: 40

Iron Mountain Inc. (NYSE:IRM) specializes in storage and information management services, with a growing footprint in the data center sector. Expanding beyond its legacy businesses of document storage and records management, the company has made significant strides in digital infrastructure, offering colocation, hyperscale data centers, and secure cloud services.

Year-to-date, Iron Mountain Inc. (NYSE:IRM) shares have declined 13%, though there has been no company-specific catalyst behind the drop aside from the Q4 2024 earnings report released on February 13, which could have led to a 7% decline in the stock. The company posted strong results, reporting 11% year-over-year revenue growth and a 15% increase in adjusted EBITDA. Management also provided an optimistic outlook for FY 2025, forecasting approximately 9% revenue growth. Additionally, they highlighted that the company’s high-growth segments—including digital solutions, data centers, and asset lifecycle management—are collectively expanding at a compound annual growth rate (CAGR) exceeding 20% and are becoming an increasingly significant portion of total revenue.

Over the years, Iron Mountain has scaled its global data center operations through a combination of acquisitions and organic growth. As of December 2024, the company operates 29 data centers across 21 global markets, either directly or through joint ventures, with a total capacity of 416 megawatts (MW). By owning and operating both land and facilities, Iron Mountain has the potential to scale up to 1,280 MW, positioning itself well to meet future data center demand.