Financial Performance - The company achieved record financial performance with revenue increasing 12% to $1.7 billion, adjusted EBITDA growing 15% to $628 million, and AFFO increasing 15% to $370 million [6][21][22] - Adjusted EBITDA margin improved to 36.7%, up 120 basis points year on year, reflecting operational strength across the business [23] Business Line Performance - The Global Records and Information Management (RIM) business achieved record revenue of $1.32 billion, driven by revenue management and digital solutions, with organic storage revenue up 6% year on year [24] - The data center business reported total revenue of $189 million, a 24% increase, with organic storage rental growth of 26% [26][27] - The Asset Lifecycle Management (ALM) business saw total revenue of $153 million, a 70% year-on-year increase, with 42% organic growth [29] Market Performance - The data center market remains strong, with pricing trends favorable and a leasing backlog in key markets such as Northern Virginia and Richmond [14][17] - The company is positioned to capitalize on significant growth opportunities in India through the acquisition of CRC India, enhancing its digital product portfolio [12][13] Company Strategy and Industry Competition - The company is focused on driving double-digit revenue growth supported by cross-selling opportunities in fragmented markets [35] - The strategic emphasis on AI-powered digital solutions is positioning the company as a leader recognized by customers and industry analysts [6][12] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit revenue and profit growth, supported by strong customer relationships and operational execution [20] - The company increased its financial guidance for the year, expecting total revenue between $6.79 billion and $6.94 billion, reflecting strong second-quarter results [32][34] Other Important Information - The company invested $477 million in the second quarter, with $442 million allocated to growth CapEx [30] - The quarterly dividend was declared at $0.0785 per share, maintaining a payout ratio of 63% [30] Q&A Session Summary Question: Data center signings came in lighter than expected; can you elaborate on the slowdown? - Management noted that while the market remains strong, customers have prioritized large campuses for AI, which has shifted focus back to the company's offerings [37][38] Question: Is the slowdown in data center leasing just timing? - Management confirmed that the focus on large language models has impacted leasing but expressed confidence in future growth due to available power and upcoming projects [40][42] Question: Can you break down the ALM growth in the quarter? - Management indicated that growth was balanced across enterprise and data center channels, with volume being the primary driver [50][51] Question: What are the dynamics in the hyperscale decommissioning sector? - Management highlighted the company's competitive advantages in secure chain of custody and global presence, which are appealing to customers [56][59] Question: Can you discuss the growth in the digital business? - Management emphasized the unique capabilities of the DXP platform in managing unstructured data, driving strong growth in the digital segment [86][88]

Financial Data and Key Metrics Changes - Revenue increased by 12% to $1.7 billion, adjusted EBITDA grew by 15% to $628 million, and AFFO increased by 15% to $370 million [5][20][21] - Adjusted EBITDA margin was 36.7%, up 120 basis points year on year, reflecting improved margins across all business segments [21][22] Business Line Data and Key Metrics Changes - Global Records and Information Management (RIM) business achieved record revenue of $1.32 billion, up $73 million year on year, with organic storage revenue up 6% [23][24] - Data center revenue was $189 million, an increase of $37 million year on year, with organic storage rental growth of 26% [25][26] - Asset Lifecycle Management (ALM) revenue was $153 million, a 70% increase year on year, with 42% organic growth [28] Market Data and Key Metrics Changes - The data center market remains strong, with pricing trends showing renewal pricing spreads of 13-20% on cash and GAAP basis [26] - The company expects data center revenue growth in excess of 25% in 2026, driven by a strong leasing backlog [27][31] Company Strategy and Development Direction - The company is focused on driving double-digit revenue growth supported by strong cross-selling opportunities in fragmented markets [31][33] - The acquisition of CRC India is expected to enhance the company's digital product portfolio and capitalize on growth opportunities in India [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit revenue and profit growth, supported by strong customer relationships and operational execution [18][31] - The company is increasing its financial guidance for the year based on strong second-quarter performance and positive outlook [31][32] Other Important Information - The company invested $477 million in the second quarter, with $442 million allocated to growth CapEx [29] - The quarterly dividend declared is $0.785 per share, with a payout ratio of 63% [29] Q&A Session Summary Question: Data center signings came in lighter than expected; can you elaborate on the slowdown? - Management noted that while the market remains strong, customers have been prioritizing large campuses for AI, which has affected leasing activity [35][36] Question: Is the slowdown in data center leasing just timing? - Management indicated that the focus on large language models has shifted back to their core markets, which should improve leasing activity going forward [38][40] Question: Can you break down the ALM growth in the quarter? - ALM growth was balanced between enterprise and data center, with volume being the primary driver of growth [45][48] Question: What are the dynamics in the hyperscale decommissioning sector? - Management highlighted their competitive advantage in providing secure and flexible decommissioning services, which has led to recent wins [52][54] Question: Can you discuss the margin trajectory and flow-through? - Management confirmed a 47% flow-through margin, driven by strong performance in the global RIM and data center businesses [60][62] Question: Can you clarify the revenue from the treasury contract? - Management stated that only $1 million of revenue was recognized in Q2, with expectations for more significant revenue in 2026 [64][69] Question: What are the targets for megawatts this year? - The expected range for new lease signings is 30 to 80 megawatts, with year-to-date signings at about 6 megawatts [72][74] Question: How is the company positioned in the data center ecosystem? - Management emphasized their focus on AI inference and cloud infrastructure, highlighting strong demand in key markets [78][82] Question: Can you elaborate on the growth in the digital business? - The digital business is experiencing strong growth due to unique capabilities in managing unstructured data, with a projected run rate of over $540 million [87][88]