Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

. Commitments and Contingencies

Purchase Commitments

In March 2022, Switch, Ltd. entered into a power purchase and sale agreement to purchase an aggregate firm commitment of 474,650 megawatt-hours, or a purchase commitment of $25.7 million, inclusive of scheduling services, during a term of 19 months starting on May 1, 2022. Additional franchise tax amounts may be due based on the data center location where the purchased power is used.

Operating Leases

During the three months ended March 31, 2022 and 2021, lease costs related to operating leases were $1.9 million and $1.7 million, respectively. Related party lease costs included in these amounts were $1.2 million for each of the three months ended March 31, 2022 and 2021.

Legal Proceedings

The Company is party to legal proceedings arising in the ordinary course of business, but is not currently a party to any legal proceeding that management believes could have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.