Property and Equipment

9 Months Ended

Feb. 29, 2024

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following as of February 29, 2024, and May 31, 2023 (in thousands):


	Estimated Useful Life	February 29, 2024		May 31, 2023
Networking equipment, electrical equipment, and software	5 years	$	31,003	$	21,173
Electric generation and transformers	15 years	5,983		4,655
Land and building
Building	39 years	103,624		63,350
Land		6,205		2,152
Land improvements	15 years	1,380		1,293
Leasehold improvements	3 years - 7 years	468		—
Construction in progress		67,297		106,226
Other equipment and fixtures	5 years - 7 years	6,781		1,684
Total cost of property and equipment		222,741		200,533
Accumulated depreciation		(11,569)		(4,940)
Property and equipment, net		$	211,172	$	195,593

Depreciation expense totaled $7.9 million and $12.9 million for the three and nine months ended February 29, 2024 and $0.9 million and $2.6 million for the three and nine months ended February 28, 2023.

During the three months ended February 29, 2024, the Company recognized $2.8 million of accelerated depreciation expense related to the abandonment of certain transformers and $1.4 million of accelerated amortization on the related right of use assets. These expenses relate primarily to transformers at the Company’s Ellendale datacenter hosting facility that required additional repairs and upgrades. The accelerated expense amount is presented within Cost of revenues in the accompanying Condensed Consolidated Statements of Operations.