Property and Equipment, Net

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Property and equipment, net consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Data center equipment	$	35,244	$	28,531
Leased and financed data center equipment	69,570		62,300
Machinery and equipment	14,728		11,613
Computer equipment	2,429		2,503
Leasehold improvements	1,110		1,268
Construction-in-progress	510		3,636
Total property and equipment	123,591		109,851
Less: accumulated depreciation	(74,018)		(60,476)
Total property and equipment, net	$	49,573	$	49,375

Depreciation expense was $5.5 million and $4.8 million for the three months ended September 30, 2023 and 2022, respectively, and was $15.8 million and $13.1 million for the nine months ended September 30, 2023 and 2022, respectively. For the Company’s equipment under finance leases and lease financing obligations, accumulated depreciation was $30.1 million and $24.5 million as of September 30, 2023 and December 31, 2022, respectively. The carrying value of the Company’s equipment under finance lease agreements and lease financing obligations was $39.4 million and $37.8 million as of September 30, 2023 and December 31, 2022, respectively.

As of September 30, 2023, the Company had long-lived assets of $60.1 million, comprising of property and equipment, net and operating lease right-of-use assets, with $55.1 million located in the United States and $5.0 million located in the Netherlands. As of December 31, 2022, the Company had long-lived assets of $56.3 million, comprising of property and equipment, net and operating lease right-of-use assets, with $50.2 million located in the United States and $6.1 million located in the Netherlands.