Leases

9 Months Ended

Sep. 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 two 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 September 30,					Nine Months Ended September 30,
		2025		2024		2025		2024
Operating lease cost		$	204,633	$	87,316	$	540,135	$	188,073
Variable lease cost		67,075		36,059		168,855		49,497
Total lease cost		$	271,708	$	123,375	$	708,990	$	237,570

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


	Nine Months Ended September 30,
		2025		2024

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	486,805	$	154,671

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



	September 30, 2025		December 31, 2024

Weighted-average remaining lease term (in years):
Operating leases	9		9
Weighted-average discount rate:
Operating leases	11	%	12	%

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


	Future Payments
Years Ending December 31,	Operating Leases
Remaining portion of 2025	$	208,724
2026	845,764
2027	871,784
2028	894,792
2029	835,114
Thereafter	4,027,407
Total undiscounted lease payments	7,683,585
Less: imputed interest	(2,959,244)
Present value of operating lease liabilities	$	4,724,341

As of September 30, 2025, the Company also had executed 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 $39.1 billion. These leases will commence between 2025 and 2029 with estimated lease terms of two to 16 years. During the nine months ended September 30, 2025, the Company modified certain agreements resulting in the termination of the related escrow agreements. Additionally, 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.

As of September 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 $917 million over the next 13 years.

As of September 30, 2025, the Company also 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 393 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 $13.5 billion to $14.4 billion over the 16 year term of this lease.

Additionally, as of September 30, 2025, the Company 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 232 MW of electrical power, which is expected to be delivered in phases between 2025 and 2027.

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 September 30, 2025. The Company's share of the earnings and losses of the JV was not material to the condensed consolidated statements of operations during the nine months ended September 30, 2025.