Aug 1 (Reuters) - Iron Mountain on Thursday

posted a rise in funds from operations (FFO) for the second

quarter, on the back of rising demand for its data-center

business.

Despite macroeconomic uncertainties, businesses are

investing heavily in data centers to handle the growing AI

workload and migrate to the cloud, benefiting companies such as

Iron Mountain that lease data centers.

The company's adjusted funds from operations, a key measure

of cash flow, rose 10% to $1.08 per share in the quarter ended

June 30, from the year-ago period.

Iron Mountain's board increased the quarterly cash dividend

by 10% to $0.715 per share for the third-quarter.

The real estate investment trust, which offers cloud data

management services and leases its data centers to clients,

reported quarterly revenue of $1.53 billion, ahead of analysts'

estimates of $1.51 billion, according to LSEG data.

The company's storage rental segment, which accounts for the

largest share in revenue, rose 11% to $920 million from a year

earlier.