v3.26.3
Leases
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Leases Leases
Significant Lease Transactions
The following table summarizes significant lease transactions during the nine months ended September 30, 2026 (in millions):
Net Incremental (2)
LeaseQuarterTransactionLease ClassificationROU assetsLease liabilities
Seattle 3 ("SE3") data centerQ3
Reassessment of lease term (1)
Finance Lease$109 $109 
(1)In September 2026, the Company approved the exercise of an existing renewal option which was not previously included in the lease term, resulting in the reassessment of the lease term. Following this reassessment, the lease term was extended to include the three remaining five-year renewal options. There are no renewal options excluded from the lease term.
(2)The net incremental amounts represent the adjustments to the right-of-use assets and liabilities recorded during the quarter that the transaction occurred.
Lease Expenses
The components of lease expenses were as follows (in millions):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Finance lease cost
Amortization of right-of-use assets (1)
$47 $47 $154 $138 
Interest on lease liabilities29 30 87 91 
Total finance lease cost76 77 241 229 
Operating lease cost56 60 172 178 
Variable lease cost21 26 60 67 
Total lease cost$153 $163 $473 $474 
(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 our condensed consolidated statements of operations.
Other Information
Other information related to leases is presented in the following tables (in millions):
Nine Months Ended
September 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$84 $88 
Operating cash flows from operating leases176 169 
Financing cash flows from finance leases129 111 
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases$164 $121 
Operating leases59 74 
September 30, 2026December 31, 2025
Weighted-average remaining lease term - finance leases (2)
13 years13 years
Weighted-average remaining lease term - operating leases (2)
12 years12 years
Weighted-average discount rate - finance leases6 %6 %
Weighted-average discount rate - operating leases5 %5 %
Finance lease right-of-use assets (3)
$2,304 $2,277 
(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 September 30, 2026 and December 31, 2025, we recorded accumulated amortization of finance lease right-of-use assets of $1.3 billion and $1.1 billion, respectively. Finance lease assets are recorded within property, plant and equipment, net in our condensed consolidated balance sheets.
Maturities of Lease Liabilities
The maturities of our lease liabilities as of September 30, 2026 are as follows (in millions):
Operating LeasesFinance LeasesTotal
2026 (3 months remaining)$47 $69 $116 
2027218 298 516 
2028195 322 517 
2029169 283 452 
2030158 267 425 
Thereafter1,062 2,133 3,195 
Total lease payments1,849 3,372 5,221 
Less imputed interest(463)(994)(1,457)
Total$1,386 $2,378 $3,764 
We entered into agreements with various landlords, primarily to lease data center spaces and ground leases, which have not yet commenced as of September 30, 2026. These leases are expected to commence between 2026 and 2029, with lease terms of 2 to 99 years and total lease commitments of approximately $694 million.
Leases Leases
Significant Lease Transactions
The following table summarizes significant lease transactions during the nine months ended September 30, 2026 (in millions):
Net Incremental (2)
LeaseQuarterTransactionLease ClassificationROU assetsLease liabilities
Seattle 3 ("SE3") data centerQ3
Reassessment of lease term (1)
Finance Lease$109 $109 
(1)In September 2026, the Company approved the exercise of an existing renewal option which was not previously included in the lease term, resulting in the reassessment of the lease term. Following this reassessment, the lease term was extended to include the three remaining five-year renewal options. There are no renewal options excluded from the lease term.
(2)The net incremental amounts represent the adjustments to the right-of-use assets and liabilities recorded during the quarter that the transaction occurred.
Lease Expenses
The components of lease expenses were as follows (in millions):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Finance lease cost
Amortization of right-of-use assets (1)
$47 $47 $154 $138 
Interest on lease liabilities29 30 87 91 
Total finance lease cost76 77 241 229 
Operating lease cost56 60 172 178 
Variable lease cost21 26 60 67 
Total lease cost$153 $163 $473 $474 
(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 our condensed consolidated statements of operations.
Other Information
Other information related to leases is presented in the following tables (in millions):
Nine Months Ended
September 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$84 $88 
Operating cash flows from operating leases176 169 
Financing cash flows from finance leases129 111 
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases$164 $121 
Operating leases59 74 
September 30, 2026December 31, 2025
Weighted-average remaining lease term - finance leases (2)
13 years13 years
Weighted-average remaining lease term - operating leases (2)
12 years12 years
Weighted-average discount rate - finance leases6 %6 %
Weighted-average discount rate - operating leases5 %5 %
Finance lease right-of-use assets (3)
$2,304 $2,277 
(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 September 30, 2026 and December 31, 2025, we recorded accumulated amortization of finance lease right-of-use assets of $1.3 billion and $1.1 billion, respectively. Finance lease assets are recorded within property, plant and equipment, net in our condensed consolidated balance sheets.
Maturities of Lease Liabilities
The maturities of our lease liabilities as of September 30, 2026 are as follows (in millions):
Operating LeasesFinance LeasesTotal
2026 (3 months remaining)$47 $69 $116 
2027218 298 516 
2028195 322 517 
2029169 283 452 
2030158 267 425 
Thereafter1,062 2,133 3,195 
Total lease payments1,849 3,372 5,221 
Less imputed interest(463)(994)(1,457)
Total$1,386 $2,378 $3,764 
We entered into agreements with various landlords, primarily to lease data center spaces and ground leases, which have not yet commenced as of September 30, 2026. These leases are expected to commence between 2026 and 2029, with lease terms of 2 to 99 years and total lease commitments of approximately $694 million.