v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
Significant Lease Transactions
The following table summarizes significant lease transactions during the year ended December 31, 2025 (in millions):
Net Incremental (2)
LeaseQuarterTransactionLease ClassificationROU assetsLease liabilities
Tokyo 98/99 ("TY98/99") new data center leaseQ4
New lease with a 7-year term (1)
Finance Lease$100 $100 
(1)    The lease has a maximum term of 21 years with termination options on the seventh and fourteenth anniversaries. As of December 31, 2025, we are reasonably certain to exercise the termination option on the seventh anniversary.
(2)    The net incremental amounts represent the adjustments to the right-of-use ("ROU") assets and liabilities recorded during the quarter that the transactions were entered.
Lease Expenses
The components of lease expenses were as follows (in millions):
Years Ended December 31,
202520242023
Finance lease cost
Amortization of right-of-use assets (1)
$189 $181 $167 
Interest on lease liabilities
121 113 113 
Total finance lease cost
310 294 280 
Operating lease cost238 229 243 
Variable lease cost89 79 62 
Total lease cost$637 $602 $585 
(1)    Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the consolidated statements of operations.
In addition, we recorded impairment charges of $38 million on operating lease right-of-use assets in the Asia-Pacific region during the fourth quarter of 2024 as described in Note 17.
Other Information
Other information related to leases is presented in the following tables (in millions):
Years Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$116 $109 $110 
Operating cash flows from operating leases233 231 231 
Financing cash flows from finance leases155 140 149 
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases$236 $213 $209 
Operating leases89 194 211 
As of December 31,
20252024
Weighted-average remaining lease term - finance leases (2)
13 years14 years
Weighted-average remaining lease term - operating leases (2)
12 years12 years
Weighted-average discount rate - finance leases6 %6 %
Weighted-average discount rate - operating leases5 %5 %
Finance lease right-of-use assets (3)
$2,277 $2,158 
(1)    Represents all non-cash changes in right-of-use assets.
(2)    Includes lease renewal options that are reasonably certain to be exercised.
(3)    As of December 31, 2025 and 2024, we recorded accumulated amortization of finance lease right-of-use assets of $1.1 billion and $964 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the consolidated balance sheets.
Maturities of Lease Liabilities
The maturities of our lease liabilities as of December 31, 2025 are as follows (in millions):
Year ended December 31, Operating LeasesFinance LeasesTotal
2026220 280 500 
2027217 292 509 
2028184 281 465 
2029154 273 427 
2030144 258 402 
Thereafter1,077 1,962 3,039 
Total lease payments1,996 3,346 5,342 
Less imputed interest(537)(991)(1,528)
Total$1,459 $2,355 $3,814 
We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of December 31, 2025. These leases are expected to commence between 2026 and 2029, with lease terms of 2 to 99 years and total lease commitments of approximately $600 million.
Leases Leases
Significant Lease Transactions
The following table summarizes significant lease transactions during the year ended December 31, 2025 (in millions):
Net Incremental (2)
LeaseQuarterTransactionLease ClassificationROU assetsLease liabilities
Tokyo 98/99 ("TY98/99") new data center leaseQ4
New lease with a 7-year term (1)
Finance Lease$100 $100 
(1)    The lease has a maximum term of 21 years with termination options on the seventh and fourteenth anniversaries. As of December 31, 2025, we are reasonably certain to exercise the termination option on the seventh anniversary.
(2)    The net incremental amounts represent the adjustments to the right-of-use ("ROU") assets and liabilities recorded during the quarter that the transactions were entered.
Lease Expenses
The components of lease expenses were as follows (in millions):
Years Ended December 31,
202520242023
Finance lease cost
Amortization of right-of-use assets (1)
$189 $181 $167 
Interest on lease liabilities
121 113 113 
Total finance lease cost
310 294 280 
Operating lease cost238 229 243 
Variable lease cost89 79 62 
Total lease cost$637 $602 $585 
(1)    Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the consolidated statements of operations.
In addition, we recorded impairment charges of $38 million on operating lease right-of-use assets in the Asia-Pacific region during the fourth quarter of 2024 as described in Note 17.
Other Information
Other information related to leases is presented in the following tables (in millions):
Years Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$116 $109 $110 
Operating cash flows from operating leases233 231 231 
Financing cash flows from finance leases155 140 149 
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases$236 $213 $209 
Operating leases89 194 211 
As of December 31,
20252024
Weighted-average remaining lease term - finance leases (2)
13 years14 years
Weighted-average remaining lease term - operating leases (2)
12 years12 years
Weighted-average discount rate - finance leases6 %6 %
Weighted-average discount rate - operating leases5 %5 %
Finance lease right-of-use assets (3)
$2,277 $2,158 
(1)    Represents all non-cash changes in right-of-use assets.
(2)    Includes lease renewal options that are reasonably certain to be exercised.
(3)    As of December 31, 2025 and 2024, we recorded accumulated amortization of finance lease right-of-use assets of $1.1 billion and $964 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the consolidated balance sheets.
Maturities of Lease Liabilities
The maturities of our lease liabilities as of December 31, 2025 are as follows (in millions):
Year ended December 31, Operating LeasesFinance LeasesTotal
2026220 280 500 
2027217 292 509 
2028184 281 465 
2029154 273 427 
2030144 258 402 
Thereafter1,077 1,962 3,039 
Total lease payments1,996 3,346 5,342 
Less imputed interest(537)(991)(1,528)
Total$1,459 $2,355 $3,814 
We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of December 31, 2025. These leases are expected to commence between 2026 and 2029, with lease terms of 2 to 99 years and total lease commitments of approximately $600 million.