Nov 4 (Reuters) - Iron Mountain on Wednesday

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

quarter, driven by robust demand for its data centers.

The Boston, Massachusetts-based real estate investment

trust's adjusted funds from operations, a key measure of cash

flow, rose 11% to $1.13 per share in the quarter ended Sept. 30,

from the year-ago period.

Despite weak enterprise spending in an unstable economic

climate, businesses continue to invest heavily in data centers,

driven by the need to manage growing AI workloads and support

ongoing cloud migration efforts.

This bodes well for companies such as Iron Mountain, which

leases data centers and counts cloud service providers such as

Oracle and Akamai Technologies ( AKAM ) among its

clients.

Peer Digital Realty ( DLR ) posted growth in its

third-quarter FFO last month on the back of resilient demand for

its data center services.

Iron Mountain reported quarterly revenue of $1.56 billion,

ahead of analysts' estimates of $1.55 billion, according to data

compiled by LSEG.

The company's storage rental segment, its largest by revenue

share, rose 9% to $936 million from a year earlier.