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Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Leases Entered into During the Period
The following table summarizes the significant lease transactions during the year ended December 31, 2022 (in thousands):
Renewal/Termination Options Excluded (1)
Net Incremental (1)
LeaseQuarterTransactionLease ClassificationROU assetsROU liabilities
Atlanta 1 ("AT1") data center lease extended & expansion (2)
Q1
Extended lease term by 12 years with additional three 10-year renewal options
Two 10-year renewal options
Finance Lease$71,994$72,549
Operating Lease(1,836)(2,391)
Hong Kong 6 ("HK6") new land and building construction siteQ2
New lease with a 15 year term
5-year renewal option
Operating Lease195,245195,245
Hong Kong 2 ("HK2") data center lease renewalQ2
Exercised the 3-year renewal option for Phase 1 & 2 (3)
Two 3-year renewal option
Operating Lease81,50481,504
New York 3 ("NY3") data center lease amendment Q4
26 year lease term after modification to remove early termination option
One 20-year renewal option and one 5-year renewal option
Finance Lease140,215140,215
(1) The net incremental amounts represent the adjustments to the right of use ("ROU") assets and liabilities recorded during the quarter that the transactions were entered.
(2) This lease had components previously classified as operating leases.
(3) The incremental balance includes the impact of reassessing lease terms of complementary leases within HK2, resulting in new lease end dates ranging from June 2030 to October 2031 from including renewal options that are reasonably certain to be exercised.
Schedule of Components of lease expenses
The components of lease expenses are as follows (in thousands):
Years Ended December 31,
20222021
Finance lease cost
Amortization of right-of-use assets (1)
$161,061 $157,057 
Interest on lease liabilities
112,518 117,896 
Total finance lease cost
273,579 274,953 
Operating lease cost213,619 221,776 
Variable lease cost41,237 33,066 
Total lease cost$528,435 $529,795 
(1) Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the consolidated statements of operations.
Schedule of Other Information Related to Leases
Other information related to leases is as follows (in thousands, except years and percent):
Years Ended December 31,
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$109,514 $113,571 
Operating cash flows from operating leases197,356 258,719 
Financing cash flows from finance leases134,202 165,539 
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases$293,858 $412,214 
Operating leases355,040 10,446 
As of December 31,
20222021
Weighted-average remaining lease term - finance leases (2)
15 years14 years
Weighted-average remaining lease term - operating leases (2)
12 years12 years
Weighted-average discount rate - finance leases6 %7 %
Weighted-average discount rate - operating leases4 %4 %
Finance lease ROU assets (3)
$2,018,070 $1,875,696 
(1) Represents all non-cash changes in ROU assets.
(2) Includes lease renewal options that are reasonably certain to be exercised.
(3) As of December 31, 2022 and 2021, we recorded accumulated amortization of finance lease assets of $840.0 million and $726.4 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the consolidated balance sheets.
Schedule of Maturities of Lease Liabilities
Maturities of lease liabilities as of December 31, 2022 are as follows (in thousands):
Year ended December 31, Operating LeasesFinance LeasesTotal
2023$181,461 $263,052 $444,513 
2024190,939 257,457 448,396 
2025185,430 276,825 462,255 
2026182,117 245,798 427,915 
2027158,465 248,767 407,232 
Thereafter1,010,606 2,191,044 3,201,650 
Total lease payments1,909,018 3,482,943 5,391,961 
Less imputed interest(496,668)(1,187,833)(1,684,501)
Total$1,412,350 $2,295,110 $3,707,460 
Schedule of Maturities of Lease Liabilities
Maturities of lease liabilities as of December 31, 2022 are as follows (in thousands):
Year ended December 31, Operating LeasesFinance LeasesTotal
2023$181,461 $263,052 $444,513 
2024190,939 257,457 448,396 
2025185,430 276,825 462,255 
2026182,117 245,798 427,915 
2027158,465 248,767 407,232 
Thereafter1,010,606 2,191,044 3,201,650 
Total lease payments1,909,018 3,482,943 5,391,961 
Less imputed interest(496,668)(1,187,833)(1,684,501)
Total$1,412,350 $2,295,110 $3,707,460