v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
The Company enters into leases as a lessee for data centers, office buildings, storage spaces, and technology equipment. In accounting for these arrangements, the Company applied judgment in performing the lease classification tests related to transfer of ownership, bargain purchase option, lease term assessment, estimated fair value, and the specialized nature of the underlying asset.
Leases for office and storage spaces generally have an initial term of one to fifteen 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 Company's equipment leases generally have an initial term of two years and include the option to purchase the asset. Additionally, the Company's ground lease contains a purchase option at the end of the lease term that it is reasonably certain to exercise. As such, the purchase option is included in the measurement of the finance lease liability. Certain lease agreements include variable costs, which generally relate to costs associated with common area maintenance, utilities reimbursed to the landlord, and physical security expenses. These variable costs are not included in operating or finance lease cost and are expensed as incurred. 
The components of total lease cost related to leases for the periods presented were as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease cost:
Operating lease cost$500 $180 $888 $336 
Finance lease cost:
Amortization of ROU assets9 9 19 16 
Interest on lease liabilities8 6 16 8 
Total finance lease cost 17 15 35 24 
Variable lease cost150 58 282 102 
Total lease cost$667 $253 $1,205 $462 
Supplemental condensed consolidated balance sheet information related to leases were as follows (in millions):
June 30,
2026		December 31,
2025
Operating leases:
Operating lease ROU assets
$16,595 $8,231 
Operating lease liabilities, current
$584 $427 
Operating lease liabilities, non-current
15,735 7,768 
Total operating lease liabilities
$16,319 $8,195 
Finance leases:
Property and equipment
$500 $500 
Less: amortization
(75)(56)
Property and equipment, net
$425 $444 
Finance lease liabilities, current
$7 $38 
Finance lease liabilities, non-current
214 216 
Total finance lease liabilities
$221 $254 
Supplemental condensed consolidated cash flow and other information related to leases for the periods presented were as follows (in millions):
Six Months Ended June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$707 $301 
Operating cash flows used in finance leases8 4 
Financing cash flows used in finance leases33 28 
Information relating to the lease term and discount rate for leases were as follows:
June 30,
2026		December 31,
2025
Weighted-average remaining lease term (in years):
Operating leases1211
Finance leases55
Weighted-average discount rate:
Operating leases10%10%
Finance leases10%10%
The future lease payments included in the measurement of the Company’s operating lease liabilities and finance lease liabilities as of June 30, 2026, were as follows (in millions):
Future Payments
Years Ending December 31,Operating
Leases 		Finance Leases
Remaining portion of 2026$1,028 $12 
20272,116 223 
20282,306 — 
20292,373 — 
20302,289 — 
Thereafter19,023 — 
Total undiscounted lease payments29,135 235 
Less: imputed interest(12,816)(14)
Present value of lease liabilities$16,319 $221 
In April 2025, the Company entered into a finance lease for data center infrastructure assets with DCSP (as defined in Note 10—Debt). Refer to Note 10—Debt for additional information on this financing arrangement, including the right of setoff in accordance with ASC 210, Balance Sheet.
Leases Not Yet Commenced
As of June 30, 2026, the Company executed additional lease agreements, primarily for data centers, equipment, and office buildings, that had not yet commenced. The aggregate amount of estimated future undiscounted lease payments associated with such leases is $35.5 billion. These leases will commence between 2026 and 2029 with estimated lease terms of seven to sixteen years. Not included in the preceding amount of estimated future undiscounted lease payments are the following lease arrangements, which include significant uncertainties regarding the amount of future lease payments.
As of June 30, 2026, the Company also had a lease agreement for various buildings located at a single site intended to be used as a data center. As of June 30, 2026, 393 MW of electrical power remained undelivered at the site and was expected to be delivered in phases in 2026 and 2028. The Company will make contractual rent payments based on
construction costs incurred by the lessor, subject to a contractual maximum of $14.7 billion over the sixteen year term of this lease.
Additionally, the Company has lease agreements where the lease payments are based on a portion of the construction costs incurred by the lessor. The payments during the construction period are variable and subject to contingencies, which are expected to be resolved at or near the lease commencement date. As of June 30, 2026, 355 MW of electrical power remains undelivered at these sites and are expected to be delivered in phases between 2026 and 2028.
In connection with certain data center lease arrangements, the Company has contractual obligations to procure and install equipment at the leased premises. These obligations represent commitments for lessee-owned assets that are separate from the Company's lease obligations. As of June 30, 2026, the Company estimated that it would incur between $500 million and $1.2 billion to fulfill these commitments, with expenditures expected to be incurred in phases through 2028.
Unconsolidated Variable Interest Entities
The Company has entered into various leases with data center developers and operators that are VIEs. The Company lacks the power to direct the activities that most significantly impact these data center developers’ and operators’ economic performance and is not the primary beneficiary; therefore, the Company has not consolidated these VIEs within the condensed consolidated financial statements. Upon lease commencement the Company will make contractual rent payments based on construction costs incurred by the lessor. Additionally, the Company’s maximum exposure to loss under these leases consists of its prepayments of $108 million associated with these lease agreements as of June 30, 2026.
The Company also entered into an equipment lease with a group of special-purpose entities (the “Equipment Lessor”) sponsored by a third-party financial investor related to the mechanical, electrical, and plumbing infrastructure for a data center. The Equipment Lessor is a VIE and the Company obtains substantially all of the economic benefits of the leased equipment but lacks the power to direct the activities that most significantly impact the Equipment Lessor’s economic performance. Accordingly, the Company is not the primary beneficiary and does not consolidate the Equipment Lessor. The Company’s maximum exposure to loss under this lease consists of its committed payments, which total approximately $1.8 billion as of June 30, 2026 and are included within aggregate estimated future undiscounted lease payments, as disclosed in the Leases Not Yet Commenced section.
Leases Leases
The Company enters into leases as a lessee for data centers, office buildings, storage spaces, and technology equipment. In accounting for these arrangements, the Company applied judgment in performing the lease classification tests related to transfer of ownership, bargain purchase option, lease term assessment, estimated fair value, and the specialized nature of the underlying asset.
Leases for office and storage spaces generally have an initial term of one to fifteen 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 Company's equipment leases generally have an initial term of two years and include the option to purchase the asset. Additionally, the Company's ground lease contains a purchase option at the end of the lease term that it is reasonably certain to exercise. As such, the purchase option is included in the measurement of the finance lease liability. Certain lease agreements include variable costs, which generally relate to costs associated with common area maintenance, utilities reimbursed to the landlord, and physical security expenses. These variable costs are not included in operating or finance lease cost and are expensed as incurred. 
The components of total lease cost related to leases for the periods presented were as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease cost:
Operating lease cost$500 $180 $888 $336 
Finance lease cost:
Amortization of ROU assets9 9 19 16 
Interest on lease liabilities8 6 16 8 
Total finance lease cost 17 15 35 24 
Variable lease cost150 58 282 102 
Total lease cost$667 $253 $1,205 $462 
Supplemental condensed consolidated balance sheet information related to leases were as follows (in millions):
June 30,
2026		December 31,
2025
Operating leases:
Operating lease ROU assets
$16,595 $8,231 
Operating lease liabilities, current
$584 $427 
Operating lease liabilities, non-current
15,735 7,768 
Total operating lease liabilities
$16,319 $8,195 
Finance leases:
Property and equipment
$500 $500 
Less: amortization
(75)(56)
Property and equipment, net
$425 $444 
Finance lease liabilities, current
$7 $38 
Finance lease liabilities, non-current
214 216 
Total finance lease liabilities
$221 $254 
Supplemental condensed consolidated cash flow and other information related to leases for the periods presented were as follows (in millions):
Six Months Ended June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$707 $301 
Operating cash flows used in finance leases8 4 
Financing cash flows used in finance leases33 28 
Information relating to the lease term and discount rate for leases were as follows:
June 30,
2026		December 31,
2025
Weighted-average remaining lease term (in years):
Operating leases1211
Finance leases55
Weighted-average discount rate:
Operating leases10%10%
Finance leases10%10%
The future lease payments included in the measurement of the Company’s operating lease liabilities and finance lease liabilities as of June 30, 2026, were as follows (in millions):
Future Payments
Years Ending December 31,Operating
Leases 		Finance Leases
Remaining portion of 2026$1,028 $12 
20272,116 223 
20282,306 — 
20292,373 — 
20302,289 — 
Thereafter19,023 — 
Total undiscounted lease payments29,135 235 
Less: imputed interest(12,816)(14)
Present value of lease liabilities$16,319 $221 
In April 2025, the Company entered into a finance lease for data center infrastructure assets with DCSP (as defined in Note 10—Debt). Refer to Note 10—Debt for additional information on this financing arrangement, including the right of setoff in accordance with ASC 210, Balance Sheet.
Leases Not Yet Commenced
As of June 30, 2026, the Company executed additional lease agreements, primarily for data centers, equipment, and office buildings, that had not yet commenced. The aggregate amount of estimated future undiscounted lease payments associated with such leases is $35.5 billion. These leases will commence between 2026 and 2029 with estimated lease terms of seven to sixteen years. Not included in the preceding amount of estimated future undiscounted lease payments are the following lease arrangements, which include significant uncertainties regarding the amount of future lease payments.
As of June 30, 2026, the Company also had a lease agreement for various buildings located at a single site intended to be used as a data center. As of June 30, 2026, 393 MW of electrical power remained undelivered at the site and was expected to be delivered in phases in 2026 and 2028. The Company will make contractual rent payments based on
construction costs incurred by the lessor, subject to a contractual maximum of $14.7 billion over the sixteen year term of this lease.
Additionally, the Company has lease agreements where the lease payments are based on a portion of the construction costs incurred by the lessor. The payments during the construction period are variable and subject to contingencies, which are expected to be resolved at or near the lease commencement date. As of June 30, 2026, 355 MW of electrical power remains undelivered at these sites and are expected to be delivered in phases between 2026 and 2028.
In connection with certain data center lease arrangements, the Company has contractual obligations to procure and install equipment at the leased premises. These obligations represent commitments for lessee-owned assets that are separate from the Company's lease obligations. As of June 30, 2026, the Company estimated that it would incur between $500 million and $1.2 billion to fulfill these commitments, with expenditures expected to be incurred in phases through 2028.
Unconsolidated Variable Interest Entities
The Company has entered into various leases with data center developers and operators that are VIEs. The Company lacks the power to direct the activities that most significantly impact these data center developers’ and operators’ economic performance and is not the primary beneficiary; therefore, the Company has not consolidated these VIEs within the condensed consolidated financial statements. Upon lease commencement the Company will make contractual rent payments based on construction costs incurred by the lessor. Additionally, the Company’s maximum exposure to loss under these leases consists of its prepayments of $108 million associated with these lease agreements as of June 30, 2026.
The Company also entered into an equipment lease with a group of special-purpose entities (the “Equipment Lessor”) sponsored by a third-party financial investor related to the mechanical, electrical, and plumbing infrastructure for a data center. The Equipment Lessor is a VIE and the Company obtains substantially all of the economic benefits of the leased equipment but lacks the power to direct the activities that most significantly impact the Equipment Lessor’s economic performance. Accordingly, the Company is not the primary beneficiary and does not consolidate the Equipment Lessor. The Company’s maximum exposure to loss under this lease consists of its committed payments, which total approximately $1.8 billion as of June 30, 2026 and are included within aggregate estimated future undiscounted lease payments, as disclosed in the Leases Not Yet Commenced section.