Leases

6 Months Ended

Jun. 30, 2025

The Company enters into leases as a lessee for data centers, office buildings, and technology equipment.

Leases for offices generally have an initial term of three to ten years, often with multi-year renewal periods. Data center leases generally have an initial term from five to fifteen years, some of which include options to extend the leases for up to ten years.

The components of lease cost related to operating leases for the periods presented were as follows (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
		2025		2024		2025		2024
Operating lease cost		$	180,450	$	65,781	$	335,502	$	100,757
Variable lease cost		57,851		10,524		101,780		13,438
Total lease cost		$	238,301	$	76,305	$	437,282	$	114,195

Supplemental condensed consolidated cash flow and other information related to operating leases for the periods presented were as follows (in thousands):


	Six Months Ended June 30,
		2025		2024

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	301,288	$	79,428

Information relating to the lease term and discount rate for operating leases were as follows:



	June 30, 2025		December 31, 2024

Weighted-average remaining lease term (in years):
Operating leases	9		9
Weighted-average discount rate:
Operating leases	12	%	12	%

The future lease payments included in the measurement of the Company’s operating lease liabilities as of June 30, 2025, were as follows (in thousands):


	Future Payments
Years Ending December 31,	Operating Leases
Remaining portion of 2025	$	336,597
2026	683,723
2027	700,911
2028	710,950
2029	647,554
Thereafter	2,620,187
Total undiscounted lease payments	5,699,922
Less: imputed interest	(2,252,450)
Present value of lease liabilities	$	3,447,472

As of June 30, 2025, the Company executed additional lease agreements, primarily for data centers and office buildings, that had not yet commenced. The aggregate amount of estimated future undiscounted lease payments associated with such leases is $34.0 billion. These leases will commence between 2025 and 2028 with estimated lease terms of four to 16 years. During the six months ended June 30, 2025, the Company modified certain agreements resulting in the termination of the related escrow agreements. As a result, $304 million of the cash held in escrow, inclusive of interest, was returned to the Company with the remaining escrow balance applied toward future lease payments at that time. These escrow funds were previously included within other non-current assets on the condensed consolidated balance sheets.

As of June 30, 2025, the Company had additional lease agreements for various data center locations with commencement dates subject to regulatory approvals and completion of landlord improvements. The Company may be required to make fixed lease payments of up to $0.9 billion over the next 13 years.

In April 2025, the Company entered into a finance lease for data center infrastructure assets with the DCSP (as defined in Note 10—Debt). Refer to Note 10—Debt for additional information.

The Company has entered into a lease agreement for various buildings located at a single site intended to be used as a data center. The agreement provides access to 133 MW of electrical power, which is expected to be delivered in phases in 2026. The Company will make contractual rent payments based on construction costs incurred by the lessor. The total contractual rent payments range from $3.8 billion to $4.8 billion over the 15 year term of this lease.

Additionally, the Company has entered into lease agreements whereby the Company will pay a portion of the construction costs incurred by the lessor during the construction period and during the lease term, which are considered variable lease payments. These lease agreements provide access to 135 MW of electrical power, which is expected to be delivered in phases between 2025 and 2027.

The Company will assess lease classification upon lease commencement.

Unconsolidated Joint Venture

In June 2025, the Company entered into a joint venture (the “JV”) with a third-party infrastructure developer to support the acquisition and development of a multi-phase data center campus in Kenilworth, New Jersey. Upon formation, the third-party infrastructure developer obtained an 85% equity interest while the Company holds the remaining 15% equity interest in the JV. The Company contributed net assets worth $57 million for its 15% equity interest. The JV will construct and develop the campus using a combination of additional debt and equity capital.

The Company accounts for its unconsolidated investment in the JV as an equity method investment included in other non-current assets on the condensed consolidated balance sheets. The carrying amount of the Company’s investment in the JV is $57 million as of June 30, 2025.