Finvest
AMT Real Estate · REIT · Towers · Data centers · Thesis updated July 19, 2026

Data centers help, but tenant churn bites

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. In Q1 2026, that segment delivered 17% cash revenue growth and made up 11% of total revenue. Demand from cloud, hybrid cloud, and AI workloads gives American Tower a second growth path beyond carrier tower spending.

The problem is that the same lease model depends on large customers paying and renewing. DISH is in default under its Strategic Collocation Agreement, and DISH represented about 2% of 2025 total property revenue and 4% of U.S. and Canada property revenue. Q1 filings also tied a U.S. and Canada property revenue decline to DISH churn.

The result is a mixed thesis. Management raised full-year guidance and says the company is in its strongest strategic position in more than a decade. Still, tenant churn, Latin America weakness, and debt costs keep this from being a clean story.

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.
Oct 2024→The initial view centered on a stable tower REIT model plus data demand. The India exit reduced some international risk but also showed the cost of past currency exposure.
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 non-cancellable 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. For a debt-heavy real estate business, interest rates and funding costs matter.

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 APAC, and Europe. These markets add scale, but also bring currency, churn, and local legal risks.

Growth engine

Data Centers

American Tower has 30 operating U.S. data center facilities with about 3.6 million net rentable square feet. This segment is growing faster than the tower business.

Option

Tower services

The services business handles site application, zoning, permitting, and construction management, mostly in the U.S. It is small, but it 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. Property operations accounted for 98% of total revenue, so customer concentration in tower leasing still drives the story.

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. Q1 2026 filings tied part of the U.S. and Canada revenue decline to 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. If this does not stabilize, international growth could keep offsetting gains elsewhere.

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 August 2026 hearing or updates to Mexico revenue reserves.

Data center growth slows

Medium impact · Medium odds

The bull case leans more on Data Centers now because that segment posted 17% cash revenue growth in Q1 2026. If AI and hybrid cloud demand cool, or if power costs and build costs rise faster than rents, the diversification benefit could fade.

We watchData Centers cash revenue growth, new lease commencements, customer expansions, and power revenue trends.

Debt and rates pressure returns

Medium impact · Medium odds

American Tower is capital intensive. It owns real estate assets, funds development, and pays REIT dividends. Higher interest rates can make refinancing more expensive and can also weigh on how investors value REIT cash flows.

We watchNet debt trends, refinancing activity, interest expense, and management comments on capital allocation.
06 Quick answers

In one breath

What does American Tower actually do?

American Tower owns communications real estate, mainly cell towers, and rents space on those sites to wireless carriers and other tenants. It also owns U.S. data centers through CoreSite.

Why is DISH important to American Tower?

DISH is a named customer dispute, not a vague risk. It represented about 2% of 2025 total property revenue and 4% of U.S. and Canada property revenue, and Q1 2026 filings tied revenue pressure to DISH churn.

Is the data center business big enough to matter?

Yes, but it is still smaller than towers. Data Centers were 11% of Q1 2026 revenue and posted 17% cash revenue growth, making them a key growth engine and diversifier.

Why is American Tower a REIT?

A REIT is a real estate investment trust. American Tower qualifies because it owns income-producing real estate assets, then leases them to customers and distributes income under REIT rules.