# American Tower Sees 16% Data Center Revenue Growth in 2026

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/42304
Published: 2026-10-28T03:36:18.000Z
Updated: 2026-10-28T03:36:18.000Z
Section: Business

> The company also set a 2030 target for tower margin expansion and raised its adjusted funds from operations per-share outlook.

American Tower expects data-center revenue to grow about 16% in 2026, while setting a separate 2030 goal for higher cash margins in its tower business. The revised outlook reflects continued strength in the data-center operation as the company also adjusts its expectations for funds from operations per share.

The company aims to expand its tower Adjusted EBITDA cash margin by 200 to 300 basis points by 2030. That equals two to three percentage points. The target covers tower margins; the 2026 growth forecast applies to data-center revenue.

President and CEO Steven O. Vondran said, “We delivered another solid quarter with our global tower leasing business performing consistently with expectations and our data center business continuing to outperform.”

In the tower business, U.S. new-business contribution stepped down in the third quarter as expected, following activity that was front-loaded earlier in the year. DISH customer churn and declines in Latin America also weighed on the business. Those details describe the U.S. new-business contribution and regional pressures, rather than a broad decline in global tower leasing.

American Tower raised its outlook for adjusted funds from operations (AFFO) per share, with stock repurchases contributing to the increase. The company expects 2026 to mark the low point for AFFO per-share growth, followed by a meaningful inflection heading into 2027. It expects to return to its long-term pace of mid- to high-single-digit AFFO per-share growth after that.

The company agreed to sell its Canadian business for $202 million. The pending sale is part of its portfolio simplification and capital-recycling actions. Separately, American Tower plans to accelerate development of CoreSite’s pipeline.

American Tower repurchased $315 million in shares during the third quarter. The board also expanded its repurchase authorization.