Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

Leases

There were no significant lease transactions during the three months ended March 31, 2025.

Lease Expenses

The components of lease expenses are as follows (in millions):

	Three Months Ended March 31,
	2025		2024
Finance lease cost
Amortization of right-of-use assets (1)	$	44	$	48
Interest on lease liabilities	30		28
Total finance lease cost	74		76
Operating lease cost	58		56
Variable lease cost	22		16
Total lease cost	$	154	$	148

(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 condensed consolidated statements of operations.

Other Information

Other information related to leases is as follows (in millions):

	Three Months Ended March 31,
	2025			2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	29		$	26
Operating cash flows from operating leases	55			50
Financing cash flows from finance leases	32			31
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases	$	84		$	30
Operating leases	70			4
	March 31, 2025			December 31, 2024
Weighted-average remaining lease term - finance leases (2)	14 years			14 years
Weighted-average remaining lease term - operating leases (2)	13 years			12 years
Weighted-average discount rate - finance leases	6		%	6		%
Weighted-average discount rate - operating leases	5		%	5		%
Finance lease right-of-use assets (3)	$	2,236		$	2,158

(1) Represents all non-cash changes in right-of-use assets.

(2) Includes lease renewal options that are reasonably certain to be exercised.

(3) As of March 31, 2025 and December 31, 2024, we recorded accumulated amortization of finance lease right-of-use assets of $990 million and $964 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the condensed consolidated balance sheets.

Maturities of Lease Liabilities

Maturities of lease liabilities as of March 31, 2025 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2025 (9 months remaining)	$	160	$	246	$	406
2026	225		266		491
2027	206		271		477
2028	177		259		436
2029	148		250		398
Thereafter	1,186		2,113		3,299
Total lease payments	2,102		3,405		5,507
Less imputed interest	(572)		(1,049)		(1,621)
Total	$	1,530	$	2,356	$	3,886

We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of March 31, 2025. These leases are expected to commence between 2025 and 2026, with lease terms of 2 to 15 years and total lease commitments of approximately $90 million.

Leases

Leases

There were no significant lease transactions during the three months ended March 31, 2025.

Lease Expenses

The components of lease expenses are as follows (in millions):

	Three Months Ended March 31,
	2025		2024
Finance lease cost
Amortization of right-of-use assets (1)	$	44	$	48
Interest on lease liabilities	30		28
Total finance lease cost	74		76
Operating lease cost	58		56
Variable lease cost	22		16
Total lease cost	$	154	$	148

(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 condensed consolidated statements of operations.

Other Information

Other information related to leases is as follows (in millions):

	Three Months Ended March 31,
	2025			2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	29		$	26
Operating cash flows from operating leases	55			50
Financing cash flows from finance leases	32			31
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases	$	84		$	30
Operating leases	70			4
	March 31, 2025			December 31, 2024
Weighted-average remaining lease term - finance leases (2)	14 years			14 years
Weighted-average remaining lease term - operating leases (2)	13 years			12 years
Weighted-average discount rate - finance leases	6		%	6		%
Weighted-average discount rate - operating leases	5		%	5		%
Finance lease right-of-use assets (3)	$	2,236		$	2,158

(1) Represents all non-cash changes in right-of-use assets.

(2) Includes lease renewal options that are reasonably certain to be exercised.

(3) As of March 31, 2025 and December 31, 2024, we recorded accumulated amortization of finance lease right-of-use assets of $990 million and $964 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the condensed consolidated balance sheets.

Maturities of Lease Liabilities

Maturities of lease liabilities as of March 31, 2025 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2025 (9 months remaining)	$	160	$	246	$	406
2026	225		266		491
2027	206		271		477
2028	177		259		436
2029	148		250		398
Thereafter	1,186		2,113		3,299
Total lease payments	2,102		3,405		5,507
Less imputed interest	(572)		(1,049)		(1,621)
Total	$	1,530	$	2,356	$	3,886

We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of March 31, 2025. These leases are expected to commence between 2025 and 2026, with lease terms of 2 to 15 years and total lease commitments of approximately $90 million.