Is CoreSite’s New Denver Data Center Shifting the Growth Outlook for American Tower (AMT)?

• Earlier this week, CoreSite, a subsidiary of American Tower, announced plans to construct the DE3 data center in Denver, marking the city's first new colocation data center in twenty years and targeting completion in 2026.
• This major project aims to meet booming demand for high-density infrastructure to support enterprise AI, cloud services, and critical IT workloads across the region.
• We'll explore how this significant expansion into high-density digital infrastructure could influence American Tower's investment narrative and growth drivers.

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American Tower Investment Narrative Recap

To be a shareholder in American Tower, you need to believe in the ongoing demand for high-density digital infrastructure to support AI, cloud, and enterprise IT, plus the company’s ability to translate these needs into consistent revenue growth and reliable dividends. While the CoreSite DE3 data center announcement highlights growth opportunities in digital infrastructure, there is no immediate or material impact on the company’s short-term catalysts such as U.S. 5G leasing activity, or the main risk of refinancing and interest rate volatility.

The July 2025 expansion of CoreSite’s Silicon Valley campus is closely aligned with this week's DE3 announcement. Both moves showcase how American Tower is leaning into the need for high-density, AI-focused facilities, reinforcing expansion as a key growth driver, even as wider market uncertainty still looms.

The catch for investors, however, is the less visible risk that comes with higher interest rates and refinancing needs...

Read the full narrative on American Tower (it's free!)

American Tower's outlook anticipates $12.0 billion in revenue and $3.7 billion in earnings by 2028. This scenario entails a 5.2% annual revenue growth rate and a $1.2 billion increase in earnings from the current $2.5 billion.

Uncover how American Tower's forecasts yield a $246.32 fair value, a 32% upside to its current price.

Exploring Other Perspectives

Community estimates for American Tower’s fair value range from US$175 to US$257, with five different perspectives on growth and earnings. While future demand for digital infrastructure is a key focus, you should be aware that opinions on the company’s outlook and risks can be very different, consider exploring several viewpoints before making decisions.

Explore 5 other fair value estimates on American Tower - why the stock might be worth as much as 38% more than the current price!

Build Your Own American Tower Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your American Tower research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free American Tower research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate American Tower's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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