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American Tower CEO told a conference call with investors that this is the first year that CoreSite is seen AI really manifest itself as a huge use case for the company
In sum – what to know:
AI now a major driver – AI-related workloads such as inferencing and machine learning are becoming the fastest-growing new leasing segment for CoreSite.
Double-digit growth continues – Hybrid, multi-cloud, and enterprise demand are delivering strong growth and mid-teens stabilized yields on new deployments.
Expansion underway – CoreSite is investing in existing campuses and exploring new metros, with new capacity typically taking 2–3 years to come online.
American Tower Corporation is seeing artificial intelligence emerge as a major new growth engine for its data center subsidiary CoreSite, with CEO Steven Vondran telling investors that AI is now driving an increasing share of new leasing activity.
Speaking during a recent conference call, Vondran said: “Demand for AI-related use cases, like inferencing and machine learning, is driving an increasing portion of new leasing, and CoreSite’s AI-ready platform is equipped to accommodate these higher-density interconnection-heavy workloads within its existing cost structure.”
He added that hybrid and multi-cloud demand continues to support strong performance. “In our data center business, strong demand for hybrid and multi-cloud deployments and positive pricing actions continue to yield impressive double-digit growth.”
According to Vondran, enterprise customers remain central to CoreSite’s strategy. “We still have our kind of bread-and-butter customer, and that’s the enterprises that need to be in an interconnection-rich data center that’s directly connected to multiple cloud on-ramps. That’s our core customer. There’s still a huge tail — a long runway of demand from that customer.”
At the same time, AI workloads are accelerating. “We’re also seeing AI workloads like inferencing and machine learning, things like that, and that’s our fastest-growing new use case,” he said, noting that this is “the first year we’ve seen AI really manifest itself as a huge use case.”
CoreSite has recorded its fourth consecutive year of record sales growth. Vondran said the company is investing in existing campuses while exploring expansion into additional metros. “We are selectively looking at opportunities in other key metros that would be complementary to our existing portfolio,” he said, adding that land has already been acquired in some areas.
On development timelines, Vondran cautioned that factors such as power and zoning can influence delivery schedules. “You can expect it to be approximately 2 to 3 years from the time we break ground to the time that we can bring that capacity online and start realizing revenue from it.”
