Elon Musk recently turned his attention to government inefficiency, specifically criticizing the outdated method of storing federal retirement records in an underground limestone mine in Boyers, Pennsylvania. As Head of the Department of Government Efficiency (DOGE) under President Donald Trump, Musk argued that this reliance on paper documents leads to unnecessary delays in retirement processing for federal employees. His proposed solution? A full-scale digital transformation.

For decades, the U.S. government has stored records in facilities operated by Iron Mountain, a company specializing in document management. The Boyers mine, repurposed in 1955, is known for its security and protection against disasters. However, Musk believes that inefficiencies caused by manual retrieval methods, slow elevators, and outdated processes are unacceptable in a modern, digital age.

Musk didn’t limit his criticism to private meetings. He took to X (formerly Twitter) through the DOGE account, sharing images of the facility and questioning why the government continues to rely on antiquated paper storage instead of embracing digital solutions. He argued that transitioning to digital records would significantly improve efficiency and allow government employees to focus on more meaningful responsibilities.

The impact of Musk’s remarks was felt almost immediately. Following his comments, Iron Mountain’s stock dropped more than 10% in just one week. Investors reacted quickly to the criticism, despite reassurances from the company’s leadership.

Bill Meaney, CEO of Iron Mountain, responded to the controversy by emphasizing that government document storage is a small part of the company’s overall business, generating only about $10 million annually, less than 0.5% of its total revenue. Rather than pushing back against Musk’s criticism, Meaney used the moment to reinforce Iron Mountain’s commitment to digital transformation. He pointed out that the company’s digital storage sector, which earns around $130 million annually, is already expanding and could benefit from the government’s move toward modernization.

Financial analysts remained largely unconcerned about the impact of Musk’s comments. Wells Fargo analyst Eric Luebchow called the market reaction an overcorrection, noting that government contracts for physical document storage are not a primary revenue source for Iron Mountain. Similarly, Barclays analyst Brendan Lynch highlighted that legal requirements still mandate the retention of physical records, making it unlikely that Iron Mountain’s contract would disappear any time soon. Lynch even suggested that investors take advantage of the stock drop to buy Iron Mountain shares at a lower price.

Musk’s push for increased government efficiency is part of a broader initiative by the Trump administration to reduce waste and modernize outdated processes. His focus on digitization goes beyond document storage, signaling a larger effort to streamline government operations. If this modernization initiative gains traction, companies specializing in digital storage and data management could see increased demand and investment.

While Musk’s remarks initially shook Iron Mountain’s stock, the larger takeaway is that modernization efforts could present new opportunities for the company’s digital services. The situation highlights the ongoing debate over government inefficiency and demonstrates how just one statement from Musk can create ripples in the market.

Whether or not the Pennsylvania mine continues to store federal records in the future, discussions about government digitization and efficiency are gaining momentum. As policymakers and business leaders navigate these changes, the shift toward digital operations is likely to shape the future of government processes in the years ahead.