v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
Significant Lease Transactions
The following table summarizes the significant lease transactions during the year ended December 31, 2024 (in millions):
Renewal/Termination Options excluded (1)
Net Incremental (2)
LeaseQuarterTransactionLease ClassificationROU assetsROU liabilities
Tokyo 15 ("TY15") new data center leaseQ3
New lease with a 20-year term
Two 10-year renewal options
Finance Lease$109 $109 
Operating Lease53 53 
(1)    These renewal/termination options are not included in determining the lease terms as we are not reasonably certain to exercise them at this time.
(2)    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.
Lease Expenses
The components of lease expenses are as follows (in millions):
Years Ended December 31,
202420232022
Finance lease cost
Amortization of right-of-use assets (1)
$181 $167 $161 
Interest on lease liabilities
113 113 112 
Total finance lease cost
294 280 273 
Operating lease cost229 243 214 
Variable lease cost79 62 41 
Total lease cost$602 $585 $528 
(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.
In addition, we recorded impairment charges of $38 million on operating lease right-of-use assets in the Asia-Pacific region during the fourth quarter of 2024 as described in Note 17.
Other Information
Other information related to leases is as follows (in millions, except years and percent):
Years Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$109 $110 $110 
Operating cash flows from operating leases231 231 197 
Financing cash flows from finance leases140 149 134 
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases$213 $209 $294 
Operating leases194 211 355 
As of December 31,
20242023
Weighted-average remaining lease term - finance leases (2)
14 years14 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)
$2,158 $2,184 
(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 December 31, 2024 and 2023, we recorded accumulated amortization of finance lease right-of-use assets of $964 million and $870 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the consolidated balance sheets.
Maturities of Lease Liabilities
Maturities of lease liabilities as of December 31, 2024 are as follows (in millions):
Year ended December 31, Operating LeasesFinance LeasesTotal
2025210 301 511 
2026217 256 473 
2027197 260 457 
2028169 249 418 
2029139 240 379 
Thereafter1,097 2,004 3,101 
Total lease payments2,029 3,310 5,339 
Less imputed interest(554)(1,035)(1,589)
Total$1,475 $2,275 $3,750 
We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of December 31, 2024. These leases will commence between 2025 and 2026, with lease terms of 2 to 30 years and total lease commitments of approximately $210 million.
Leases Leases
Significant Lease Transactions
The following table summarizes the significant lease transactions during the year ended December 31, 2024 (in millions):
Renewal/Termination Options excluded (1)
Net Incremental (2)
LeaseQuarterTransactionLease ClassificationROU assetsROU liabilities
Tokyo 15 ("TY15") new data center leaseQ3
New lease with a 20-year term
Two 10-year renewal options
Finance Lease$109 $109 
Operating Lease53 53 
(1)    These renewal/termination options are not included in determining the lease terms as we are not reasonably certain to exercise them at this time.
(2)    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.
Lease Expenses
The components of lease expenses are as follows (in millions):
Years Ended December 31,
202420232022
Finance lease cost
Amortization of right-of-use assets (1)
$181 $167 $161 
Interest on lease liabilities
113 113 112 
Total finance lease cost
294 280 273 
Operating lease cost229 243 214 
Variable lease cost79 62 41 
Total lease cost$602 $585 $528 
(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.
In addition, we recorded impairment charges of $38 million on operating lease right-of-use assets in the Asia-Pacific region during the fourth quarter of 2024 as described in Note 17.
Other Information
Other information related to leases is as follows (in millions, except years and percent):
Years Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$109 $110 $110 
Operating cash flows from operating leases231 231 197 
Financing cash flows from finance leases140 149 134 
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases$213 $209 $294 
Operating leases194 211 355 
As of December 31,
20242023
Weighted-average remaining lease term - finance leases (2)
14 years14 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)
$2,158 $2,184 
(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 December 31, 2024 and 2023, we recorded accumulated amortization of finance lease right-of-use assets of $964 million and $870 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the consolidated balance sheets.
Maturities of Lease Liabilities
Maturities of lease liabilities as of December 31, 2024 are as follows (in millions):
Year ended December 31, Operating LeasesFinance LeasesTotal
2025210 301 511 
2026217 256 473 
2027197 260 457 
2028169 249 418 
2029139 240 379 
Thereafter1,097 2,004 3,101 
Total lease payments2,029 3,310 5,339 
Less imputed interest(554)(1,035)(1,589)
Total$1,475 $2,275 $3,750 
We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of December 31, 2024. These leases will commence between 2025 and 2026, with lease terms of 2 to 30 years and total lease commitments of approximately $210 million.