AMT Real Estate · REIT · Towers · Data centers · Thesis updated August 11, 2026

Data centers surge while international tower footprint shrinks

American Tower is a global REIT built around long leases on communications sites.
Data Centers reached 11% of Q1 2026 revenue and management just raised the segment revenue growth outlook to 15%.
The company exited the APAC region in Q2 2026 to focus on higher return developed markets.
DISH is in default, and filings tie U.S. and Canada revenue pressure directly to DISH churn.
Latin America is a weak spot, with organic declines tied to Brazil churn and DISH issues.

01 Running thesis

Strong assets, messy tenants

American Tower has a simple core idea. It owns hard to replace tower sites, then leases space on them to wireless carriers and other users. Those leases tend to be long, non-cancellable, and include rent increases. That makes the base business more predictable than many real estate companies.

The best part of the story is now Data Centers. Management raised the data center revenue growth outlook to 15% in Q2 2026. Demand from cloud, hybrid cloud, and AI workloads gives American Tower a second growth path beyond carrier tower spending.

The company is simplifying its geographic focus. In Q2 2026, American Tower completed its exit from the APAC region by selling operations in the Philippines and Bangladesh. This shifts capital toward developed markets where returns are clearer.

The problem is that the lease model depends on large customers paying and renewing. DISH is in default under its Strategic Collocation Agreement. DISH represented about 2% of 2025 total property revenue. Management expects a 400 basis point headwind from DISH churn, making this a mixed thesis.

Jul 2026▲Q2 2026 showed a clearer focus. The company exited the APAC region and raised data center revenue growth guidance to 15%.

Apr 2026→Q1 2026 made the split clearer. Data Centers grew fast and management raised guidance, but DISH churn hurt U.S. and Canada revenue and Latin America turned negative.

Feb 2026▼The 2025 annual filing disclosed that DISH was in default and represented about 2% of total property revenue. That made tenant concentration a live risk, not just a theory.

Oct 2025▼A dispute with AT&T Mexico added a new Latin America overhang. The same filing showed data centers still growing, but tenant risk became more specific.

Jul 2025→Midyear filings confirmed the existing pattern. Data Centers kept growing, while U.S. churn and Latin America reserves remained pressure points.

Feb 2025→The India sale was complete and segment reporting changed. Debt reduction helped the strategy, while the accounting loss and tower life estimate change made reported results harder to read.

02 Business model

Rent on scarce network sites

American Tower makes most of its money by leasing space on towers and other communications sites. A wireless carrier may rent space for antennas and related gear. Adding another tenant to the same tower can be very profitable because the tower is already built.

The leases usually start with five to ten year terms and include renewal options. Rent often rises each year. In the U.S., the fixed annual escalator averages about 3%, while many international leases use inflation-linked increases.

The company says existing contracts represent nearly $55 billion of non-cancellable customer lease revenue over future periods. That backlog gives good visibility, but it does not remove customer risk. DISH shows that a large tenant dispute can still hit reported revenue and guidance.

American Tower also owns U.S. data centers through its CoreSite business. That adds exposure to cloud and AI demand, but it also uses capital and power. Partner Stonepeak plans to convert its preferred notes in Q3 2026, which will reduce American Tower's ownership of CoreSite to about 64%.

03 Product portfolio

Towers first, data centers rising

Cash cow

Communications towers

This is the main business. American Tower leases vertical space to wireless carriers, broadcasters, government users, and other tenants.

Steady

Distributed antenna systems

DAS sites help improve wireless coverage in dense or hard to cover areas. They support the same leasing model as the larger tower portfolio.

Steady

International communications sites

The company operates sites across Latin America, Africa, and Europe. These markets add scale but also bring currency, churn, and local legal risks.

Growth engine

Data Centers

American Tower operates 30 U.S. data center facilities. This segment is growing faster than the tower business and guidance calls for 15% revenue growth.

Option

Tower services

The services business handles site application, zoning, permitting, and construction management. It is small but helps support tower leasing activity.

04 Business segments

Q1 revenue mix

U.S. & Canada Property46%declining

Latin America Property18%declining

Africa & APAC Property14%modest

Data Centers11%growing fast

Europe Property10%flat

Services2%flat

Segment shares use revenue for the three months ended March 31, 2026. The company exited the APAC region in Q2 2026, which will shift future reporting.

05 Risk factors

What could break the thesis

DISH default gets worse

High impact · Medium odds

DISH is in default under its Strategic Collocation Agreement and has sought to avoid its obligations. DISH was about 2% of 2025 total property revenue and 4% of U.S. and Canada property revenue. Management sees a 400 basis point headwind from DISH churn.

We watchAny court, settlement, payment, or guidance update tied to the DISH default.

Latin America churn stays negative

Medium impact · High odds

Latin America saw a 2% organic decline in Q1 2026. Management tied the weakness mainly to high churn in Brazil and ongoing DISH issues. They expect market repair into 2027, but international growth could keep offsetting gains elsewhere until then.

We watchLatin America organic growth, Brazil churn, and revenue reserve commentary.

AT&T Mexico arbitration drags on

Medium impact · Medium odds

AT&T Mexico represented about $300 million of tenant revenue in 2024 and is in a dispute over lease amounts. Some payments and future amounts are subject to reserve or escrow treatment. A poor result could pressure Latin America revenue and margins.

We watchAny settlement before the hearing or updates to Mexico revenue reserves.

CoreSite ownership dilution

Low impact · High odds

The bull case leans heavily on Data Centers. However, Stonepeak's planned note conversion in Q3 2026 will reduce American Tower's ownership of CoreSite from 72% to about 64%. This mildly dilutes the long term capture of data center upside.

We watchThe completion of the Stonepeak equity conversion and any changes to capital funding for data centers.

Debt and rates pressure returns