| Leases |
Leases We have entered into operating and finance lease agreements primarily for data centers, land, and offices throughout the world with varying lease terms. Components of lease costs were as follows (in millions): | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2023 | | 2024 | | 2025 | | Operating lease cost | $ | 3,362 | | | $ | 3,304 | | | $ | 3,345 | | | Finance lease cost: | | | | | | | Amortization of lease assets | 469 | | | 413 | | | 553 | | | Interest on lease liabilities | 35 | | | 31 | | | 65 | | | Finance lease cost | 504 | | | 444 | | | 618 | | | Variable lease cost | 1,182 | | | 1,425 | | | 1,739 | | | Total lease cost | $ | 5,048 | | | $ | 5,173 | | | $ | 5,702 | |
Supplemental information related to leases was as follows (in millions): | | | | | | | | | | | | | December 31, | | 2024 | | 2025 | Weighted-average remaining lease term: | | | | | Operating leases | 7.8 years | | 7.6 years | | Finance leases | 10.4 years | | 8.3 years | Weighted-average discount rate: | | | | | Operating leases | 3.4 | % | | 3.6 | % | | Finance leases | 2.8 | % | | 3.1 | % |
| | | | | | | | | | | | | | | December 31, | | | 2024 | | 2025 | | Operating leases: | | | | | | Operating lease assets | | $ | 13,588 | | | $ | 15,221 | | | | | | | | Accrued expenses and other liabilities | | $ | 2,887 | | | $ | 3,209 | | | Operating lease liabilities | | 11,691 | | | 12,744 | | | Total operating lease liabilities | | $ | 14,578 | | | $ | 15,954 | | Finance leases: | | | | | | Property and equipment, at cost | | $ | 4,622 | | | $ | 6,822 | | | Accumulated depreciation | | (2,037) | | | (2,025) | | | Property and equipment, net | | $ | 2,585 | | | $ | 4,797 | | | | | | | | Accrued expenses and other liabilities | | $ | 235 | | | $ | 441 | | | Other long-term liabilities | | 1,442 | | | 2,059 | | | Total finance lease liabilities | | $ | 1,677 | | | $ | 2,500 | |
| | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2023 | | 2024 | | 2025 | | Cash payments for lease liabilities: | | | | | | Operating cash flows used for operating leases | $ | 3,173 | | | $ | 3,425 | | | $ | 3,370 | | Operating cash flows used for finance leases | $ | 35 | | | $ | 31 | | | $ | 65 | | Financing cash flows used for finance leases(1) | $ | 705 | | | $ | 405 | | | $ | 1,988 | | | Assets obtained in exchange for lease liabilities: | | | | | | | Operating leases | $ | 2,877 | | | $ | 2,510 | | | $ | 4,070 | | | Finance leases | $ | 564 | | | $ | 313 | | | $ | 1,606 | |
(1)Financing cash flows used for financing leases are included within financing activities as repayments of debt. The year ended December 31, 2025 includes $1.1 billion of prepayments for finance leases not yet commenced. Future lease payments as of December 31, 2025 were as follows (in millions): | | | | | | | | | | | | | | | Operating Leases | | Finance
Leases | | | | 2026 | $ | 3,275 | | | $ | 491 | | | | | 2027 | 3,082 | | | 345 | | | | | 2028 | 2,510 | | | 335 | | | | | 2029 | 2,061 | | | 314 | | | | | 2030 | 1,669 | | | 241 | | | | | Thereafter | 5,654 | | | 1,143 | | | | Total undiscounted lease payments | 18,251 | | | 2,869 | | | | Less: imputed interest | (2,297) | | | (369) | | | | | Total lease liability balance | $ | 15,954 | | | $ | 2,500 | | | |
As of December 31, 2025, we have entered into leases primarily related to data centers that have not yet commenced with short-term and long-term future lease payments of $5.8 billion and $52.7 billion, respectively, that are not yet recorded. These leases will commence between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years. In January 2026, we executed a power purchase agreement which we expect to be accounted for as a lease resulting in future payments depending on certain agreement terms of $9.9 billion between 2027 and 2047. If certain contractual conditions for the project are not met, we would instead make a one-time payment of approximately $3.5 billion and assume ownership of the power generating assets.
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| Leases |
Leases We have entered into operating and finance lease agreements primarily for data centers, land, and offices throughout the world with varying lease terms. Components of lease costs were as follows (in millions): | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2023 | | 2024 | | 2025 | | Operating lease cost | $ | 3,362 | | | $ | 3,304 | | | $ | 3,345 | | | Finance lease cost: | | | | | | | Amortization of lease assets | 469 | | | 413 | | | 553 | | | Interest on lease liabilities | 35 | | | 31 | | | 65 | | | Finance lease cost | 504 | | | 444 | | | 618 | | | Variable lease cost | 1,182 | | | 1,425 | | | 1,739 | | | Total lease cost | $ | 5,048 | | | $ | 5,173 | | | $ | 5,702 | |
Supplemental information related to leases was as follows (in millions): | | | | | | | | | | | | | December 31, | | 2024 | | 2025 | Weighted-average remaining lease term: | | | | | Operating leases | 7.8 years | | 7.6 years | | Finance leases | 10.4 years | | 8.3 years | Weighted-average discount rate: | | | | | Operating leases | 3.4 | % | | 3.6 | % | | Finance leases | 2.8 | % | | 3.1 | % |
| | | | | | | | | | | | | | | December 31, | | | 2024 | | 2025 | | Operating leases: | | | | | | Operating lease assets | | $ | 13,588 | | | $ | 15,221 | | | | | | | | Accrued expenses and other liabilities | | $ | 2,887 | | | $ | 3,209 | | | Operating lease liabilities | | 11,691 | | | 12,744 | | | Total operating lease liabilities | | $ | 14,578 | | | $ | 15,954 | | Finance leases: | | | | | | Property and equipment, at cost | | $ | 4,622 | | | $ | 6,822 | | | Accumulated depreciation | | (2,037) | | | (2,025) | | | Property and equipment, net | | $ | 2,585 | | | $ | 4,797 | | | | | | | | Accrued expenses and other liabilities | | $ | 235 | | | $ | 441 | | | Other long-term liabilities | | 1,442 | | | 2,059 | | | Total finance lease liabilities | | $ | 1,677 | | | $ | 2,500 | |
| | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2023 | | 2024 | | 2025 | | Cash payments for lease liabilities: | | | | | | Operating cash flows used for operating leases | $ | 3,173 | | | $ | 3,425 | | | $ | 3,370 | | Operating cash flows used for finance leases | $ | 35 | | | $ | 31 | | | $ | 65 | | Financing cash flows used for finance leases(1) | $ | 705 | | | $ | 405 | | | $ | 1,988 | | | Assets obtained in exchange for lease liabilities: | | | | | | | Operating leases | $ | 2,877 | | | $ | 2,510 | | | $ | 4,070 | | | Finance leases | $ | 564 | | | $ | 313 | | | $ | 1,606 | |
(1)Financing cash flows used for financing leases are included within financing activities as repayments of debt. The year ended December 31, 2025 includes $1.1 billion of prepayments for finance leases not yet commenced. Future lease payments as of December 31, 2025 were as follows (in millions): | | | | | | | | | | | | | | | Operating Leases | | Finance
Leases | | | | 2026 | $ | 3,275 | | | $ | 491 | | | | | 2027 | 3,082 | | | 345 | | | | | 2028 | 2,510 | | | 335 | | | | | 2029 | 2,061 | | | 314 | | | | | 2030 | 1,669 | | | 241 | | | | | Thereafter | 5,654 | | | 1,143 | | | | Total undiscounted lease payments | 18,251 | | | 2,869 | | | | Less: imputed interest | (2,297) | | | (369) | | | | | Total lease liability balance | $ | 15,954 | | | $ | 2,500 | | | |
As of December 31, 2025, we have entered into leases primarily related to data centers that have not yet commenced with short-term and long-term future lease payments of $5.8 billion and $52.7 billion, respectively, that are not yet recorded. These leases will commence between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years. In January 2026, we executed a power purchase agreement which we expect to be accounted for as a lease resulting in future payments depending on certain agreement terms of $9.9 billion between 2027 and 2047. If certain contractual conditions for the project are not met, we would instead make a one-time payment of approximately $3.5 billion and assume ownership of the power generating assets.
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