v3.26.1
Investments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements Investments and Fair Value Measurements
Marketable Securities
For the three months and six months ended June 30, 2026 and 2025, the realized or unrealized gains or losses related to the Company's debt securities were not material. As of June 30, 2026 and December 31, 2025, there was no allowance for credit losses related to the Company's debt securities. The weighted-average remaining maturity of the Company's debt securities was less than one year as of June 30, 2026.
Unconsolidated Variable Interest Entities
During the six months ended June 30, 2026, the Company committed to invest up to $1.7 billion, which includes incremental funding commitments of approximately $500 million during the three months ended June 30, 2026, to acquire equity interests in two separate joint ventures that each hold a data center development project. These funding commitments are expected to be satisfied during 2026, at which time the Company will be admitted as a member of these joint ventures and will be required to provide additional capital contributions in accordance with the applicable joint venture agreements to fund the further development of these projects. As of June 30, 2026, the Company was not the primary beneficiary of these VIEs and did not consolidate them, as it lacked the power to direct the activities that most significantly impact the VIEs' economic performance. The Company's maximum exposure to loss related to these joint ventures is limited to its total funding commitments of $1.7 billion as of June 30, 2026. The carrying value of the Company's investment in these VIEs was $479 million as of June 30, 2026, of which $221 million is accounted for as an equity method investment and is included in other non-current assets on the condensed consolidated balance sheets.
Unconsolidated Joint Venture
Additionally, in June 2025, the Company entered into a joint venture (the "JV") that is a VIE, with a data center developer and operator to support the acquisition and development of a multi-phase data center campus in New Jersey. Upon formation, the third-party infrastructure developer obtained an 85% equity interest in the JV, while the Company held the remaining 15% equity interest, for which the Company contributed net assets worth $57 million. As of June 30, 2026, the Company's ownership interest was 35%. The JV expects to construct and develop the campus using a combination of additional debt and equity capital. The Company provides construction management, administrative and property management services to the JV.
The Company is not the primary beneficiary and does not consolidate the VIE as it lacks the power to direct the activities that most significantly impact the JV's economic performance. Accordingly, the investment in the JV is accounted for as an equity method investment and is included in other non-current assets on the condensed consolidated balance sheets. During the six months ended June 30, 2026, the Company made additional capital contributions to the JV, and incurred equity method losses. The carrying value of the Company's investment in the JV was $44 million and $51 million as of June 30, 2026 and December 31, 2025, respectively.
The Company also entered into a data center lease agreement with the JV in June 2025 which will commence upon completion of construction. Once commenced, the lease will have an initial lease term of 15 years with base rent payments that are based on a percentage of construction costs incurred. Additionally, in November 2025, the Company entered into a ground lease with the unconsolidated joint venture covering a separate parcel for a potential future development. Refer to Note 8—Leases for additional information on the ground lease.
The Company's maximum exposure to loss with respect to the JV includes (i) the carrying value of the Company's investment, (ii) up to $95 million related to a guarantee for certain contingent consideration payable to a third-party by the JV upon the achievement of certain milestones, (iii) lease prepayment of $37 million, and (iv) potential requirements to fund the construction and development of the data center campus to the extent the JV is unable to secure third-party financing. Based on current projected development costs and third-party financing secured by the JV as of June 30, 2026, the Company estimated that the maximum funding exposure to fund construction and development costs is up to $160 million.
Financial Instruments Measured at Fair Value
The Company measures certain financial assets and liabilities at fair value in accordance with ASC 820, Fair Value Measurement, which establishes a framework for measuring fair value and a fair value hierarchy based on the observability of inputs. This hierarchy prioritizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities.
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.
Financial Instruments Measured at Fair Value on a Recurring Basis
The following table presents information about the Company's financial assets and liabilities that are measured at fair value on a recurring basis within the fair value hierarchy as of the end of each reporting period (in millions):
Fair Value
Hierarchy 		June 30,
2026		December 31,
2025
Financial assets:
Cash and cash equivalents
Commercial paperLevel 2$299 $— 
Marketable securities
Commercial paperLevel 22 12 
Corporate bondsLevel 213 22 
Prepaid expenses and other current assets
Foreign exchange forward contracts not designated as accounting hedgesLevel 24 5 
Other non-current assets
Interest rate swaps designated as cash flow hedgesLevel 213 — 
Power swaps not designated as accounting hedgesLevel 21 — 
Marketable equity securitiesLevel 145 — 
Power purchase agreementsLevel 3— 2 
Total financial assets$377 $41 
Financial liabilities:
Other current liabilities
Foreign exchange forward contracts not designated as accounting hedgesLevel 2$45 $4 
Contingent considerationLevel 3— 20 
Other non-current liabilities
Interest rate swaps designated as cash flow hedgesLevel 25 1 
Cross currency swaps designated as fair value hedgesLevel 261 — 
Total financial liabilities$111 $25 
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Our strategic investments primarily consist of non-marketable equity securities accounted for under the measurement alternative, which are investments in privately-held companies without readily determinable market values and classified within Level 3 of the fair value hierarchy. The carrying value of these non-marketable equity securities is adjusted upward or downward to fair value upon observable transactions for identical or similar investments of the same issuer or impairment. As of June 30, 2026 and December 31, 2025, the carrying value of our non-marketable equity securities
accounted for under measurement alternative were $315 million and $117 million respectively, and is included in other non-current assets in our consolidated balance sheets.
Derivative Instruments
The notional amounts of the Company's outstanding derivative instruments were as follows (in millions):

June 30,
2026		December 31,
2025
Derivative instruments designated as accounting hedges
Interest rate swaps$4,661 $319 
Cross currency swaps2,314 — 
Total$6,975 $319 
Derivative instruments not designated as accounting hedges
Foreign exchange forward contracts$1,835 $1,213 
Power swaps104 — 
Total$1,939 $1,213 
Gains (losses) associated with derivative instruments were as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest rate swaps designated as accounting hedges
Gain recognized in other comprehensive income (loss)$5 $— $10 $— 
Cross currency swaps designated as accounting hedges
Loss recognized in other comprehensive income (loss)$(27)$— $(27)$— 
Loss recognized in other income (expense), net$(34)$— $(34)$— 
Foreign exchange forward contracts not designated as accounting hedges
Gain (loss) recognized in other income (expense), net$(28)$2 $(63)$2 
In June 2026, the Company entered into a cross currency interest rate swap with a notional amount of €2.0 billion that matures in 2032. The swap is designated as a fair value hedge of 2032 EUR Senior Notes (as defined in Note 10—Debt) to hedge changes in the fair value of the 2032 EUR Senior Notes attributable to changes in the spot exchange rate. Changes in the fair value of the swap attributable to spot exchange rate changes are recorded in foreign exchange gain or loss within other income (expense) and offset the currency exchange remeasurement gain or loss on the €2.0 billion senior notes. Changes in the fair value of the excluded component are recorded in accumulated other comprehensive income (loss) and are amortized over the life of the swap.
For the three and six months ended June 30, 2026 and 2025, gains and losses on the Company's power swaps, which are not designated as accounting hedges and are recognized in cost of revenue, were not material.
For the three and six months ended June 30, 2026 and 2025, the amount reclassified out of accumulated other comprehensive loss into earnings was not material. As of June 30, 2026, the amount the Company expects to reclassify out of accumulated other comprehensive income (loss) into earnings within the next twelve months is not material.
The Company's valuation of the warrant liabilities utilized the Black-Scholes option-pricing model that relied on the following significant inputs:
March 21,
2025
Stock price$41 
Volatility60%
Risk-free rate4%
Dividend yield—%
The following tables present summaries of the changes in the fair value on a recurring basis of the Company's Level 3 financial instruments for the periods presented (in millions):
Power Purchase
Agreements –
Asset		Contingent Consideration
Balance at December 31, 2025$2 $20 
Adjustment to fair value— 1 
Reclassification(2)$— 
Balance at March 31, 2026$— $21 
Settlements— (21)
Balance at June 30, 2026$— $— 
Power Purchase
Agreements –
Asset		Warrant
Liabilities
Balance at December 31, 2024$3 $200 
Adjustment to fair value2 (27)
Reclassification— (173)
Balance at March 31, 2025$5 $— 
Adjustment to fair value(1)— 
Balance at June 30, 2025$4 $— 
Notes Receivable
Notes receivable are primarily related to the DCSP Financing Arrangements (as defined in Note 10—Debt) and are reported at their amortized cost basis. As of June 30, 2026 and December 31, 2025, the Company determined that the fair values of its notes receivable approximate the carrying values.