v3.26.3
Leases
 3 Months Ended
Aug. 31, 2026
Leases [Abstract]  
Leases Leases
Lessor Accounting
On June 5, 2026, the Company entered into an approximately 15-year lease (with three five-year renewal options) with a high investment-grade hyperscaler at its Delta Forge 2 210 MW critical IT load campus located in its southern region, comprising a single building under construction. The lease is for the full 210 MW of critical IT load, representing approximately $5.2 billion of contracted revenue over the base term, with expected delivery in the first half of calendar year 2028. Following the signing of this lease, our aggregate contracted critical IT load is 1,410 MW.
A summary of minimum lease payments due from these leases is shown below. These amounts do not reflect future rental revenues from renewal or replacement of existing leases unless the Company is reasonably certain it will exercise the option or the lessee has the sole ability to exercise the option. Reimbursements of operating expenses and variable rent increases are excluded from the table below (in thousands):
Minimum Contracted Payments
FY27$467,961 
FY281,579,517 
FY292,360,558 
FY302,371,420 
FY312,371,420 
Thereafter26,580,159 
Total$35,731,035 
Lessee Accounting
From time to time, the Company enters into leases for equipment and office space. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance lease right of use assets and liabilities separately on the unaudited condensed consolidated balance sheets as their own captions, with the liabilities split between current and long-term.
Components of lease expense were as follows (in thousands):
Three Months Ended
August 31, 2026August 31, 2025
Operating lease cost:
Operating lease expense$6,517$6,252
Short-term lease expense106697
Total operating lease cost6,6236,949
Finance lease expense:
Amortization of right-of-use assets(1)
14,99915,334
Interest on lease liabilities1,5233,530
Total finance lease cost16,52218,864
Variable lease cost599749
Total net lease cost$23,744$26,562
(1)    Amortization of right-of-use assets is included within cost of revenues and selling, general and administrative expense in the unaudited condensed consolidated statements of operations.
The following table represents the Company’s future minimum lease payments as of August 31, 2026:
Operating LeasesFinance LeasesTotal
FY27$16,036 $37,374$53,410 
FY2823,967 10,96834,935 
FY2918,391 —18,391 
FY304,812 —4,812 
FY311,315 —1,315 
Thereafter4,553 —4,553 
Total lease payments69,074 48,342117,416 
Less: imputed interest(8,205)(2,395)(10,600)
Total lease liabilities60,86945,947106,816 
Less: Current portion of lease liability(19,199)(43,490)(62,689)
Long-term portion of lease liability$41,670 $2,457$44,127 
Supplemental cash flow and other information related to leases is as follows:
Three Months Ended
August 31, 2026August 31, 2025
Weighted-average years remaining (in years):
Operating leases3.2 years3.7 years
Finance leases0.9 years1.1 years
Weighted-average discount rate:
Operating leases7.5 %7.4 %
Finance leases9.9 %9.9 %
Leases Leases
Lessor Accounting
On June 5, 2026, the Company entered into an approximately 15-year lease (with three five-year renewal options) with a high investment-grade hyperscaler at its Delta Forge 2 210 MW critical IT load campus located in its southern region, comprising a single building under construction. The lease is for the full 210 MW of critical IT load, representing approximately $5.2 billion of contracted revenue over the base term, with expected delivery in the first half of calendar year 2028. Following the signing of this lease, our aggregate contracted critical IT load is 1,410 MW.
A summary of minimum lease payments due from these leases is shown below. These amounts do not reflect future rental revenues from renewal or replacement of existing leases unless the Company is reasonably certain it will exercise the option or the lessee has the sole ability to exercise the option. Reimbursements of operating expenses and variable rent increases are excluded from the table below (in thousands):
Minimum Contracted Payments
FY27$467,961 
FY281,579,517 
FY292,360,558 
FY302,371,420 
FY312,371,420 
Thereafter26,580,159 
Total$35,731,035 
Lessee Accounting
From time to time, the Company enters into leases for equipment and office space. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance lease right of use assets and liabilities separately on the unaudited condensed consolidated balance sheets as their own captions, with the liabilities split between current and long-term.
Components of lease expense were as follows (in thousands):
Three Months Ended
August 31, 2026August 31, 2025
Operating lease cost:
Operating lease expense$6,517$6,252
Short-term lease expense106697
Total operating lease cost6,6236,949
Finance lease expense:
Amortization of right-of-use assets(1)
14,99915,334
Interest on lease liabilities1,5233,530
Total finance lease cost16,52218,864
Variable lease cost599749
Total net lease cost$23,744$26,562
(1)    Amortization of right-of-use assets is included within cost of revenues and selling, general and administrative expense in the unaudited condensed consolidated statements of operations.
The following table represents the Company’s future minimum lease payments as of August 31, 2026:
Operating LeasesFinance LeasesTotal
FY27$16,036 $37,374$53,410 
FY2823,967 10,96834,935 
FY2918,391 —18,391 
FY304,812 —4,812 
FY311,315 —1,315 
Thereafter4,553 —4,553 
Total lease payments69,074 48,342117,416 
Less: imputed interest(8,205)(2,395)(10,600)
Total lease liabilities60,86945,947106,816 
Less: Current portion of lease liability(19,199)(43,490)(62,689)
Long-term portion of lease liability$41,670 $2,457$44,127 
Supplemental cash flow and other information related to leases is as follows:
Three Months Ended
August 31, 2026August 31, 2025
Weighted-average years remaining (in years):
Operating leases3.2 years3.7 years
Finance leases0.9 years1.1 years
Weighted-average discount rate:
Operating leases7.5 %7.4 %
Finance leases9.9 %9.9 %