Property and Equipment, Net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

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


	September 30, 2024		December 31, 2023
Data center equipment	$	54,350	$	37,245
Leased and financed data center equipment	61,885		68,757
Machinery and equipment	14,706		14,004
Computer equipment	2,626		2,472
Leasehold improvements	244		1,114
Construction-in-progress	332		1,371
Total property and equipment	134,143		124,963
Less: accumulated depreciation and amortization	(92,611)		(79,363)
Total property and equipment, net	$	41,532	$	45,600

Depreciation expense was $5.4 million and $5.5 million for the three months ended September 30, 2024 and 2023, respectively and was $16.4 million and $15.8 million for the nine months ended September 30, 2024 and 2023, respectively. For the Company’s equipment under finance leases and lease financing obligations, accumulated depreciation was $28.8 million and $31.6 million as of September 30, 2024 and December 31, 2023, respectively. The carrying value of

the Company’s equipment under finance lease agreements and lease financing obligations was $33.1 million and $37.1 million as of September 30, 2024 and December 31, 2023, respectively.

The Company recorded a gain of $0.1 million and $0.3 million for the three and nine months ended September 30, 2024, respectively, as a result of disposing of certain hard drives. During the three and nine months ended September 30, 2023, the Company recorded a gain of $0.2 million and $0.3 million, respectively, related to the disposal of long-lived assets. These disposals occurred in the ordinary course of business, as the Company continuously evaluates its requirements for operating its data centers. These gains are recorded as general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive loss.

The Company has long-lived assets, comprising of property and equipment, net and operating lease right-of-use assets consisting of the following (in thousands):


	September 30, 2024		December 31, 2023

United States	$	50,764	$	50,746
The Netherlands	$	6,497	4,834
Total property and equipment, net and operating lease right-of-use assets	$	57,261	$	55,580