AKAM · 10-Q · 2026Q2 · Full report

Datacenter Capacity Expansion

AKAMAI TECHNOLOGIES INC · 2026-08-07 · Importance 40 · Surprise 42

Akamai is accelerating investment in cloud infrastructure services, prioritizing the rapid build-out of its global footprint. The company is expanding its network and co-location presence, including additional space, racks, servers and networking equipment at co-location facilities. Capital expenditures and planned investments are also directed toward cloud infrastructure services and AI infrastructure, indicating increased capacity requirements from these end markets. In Virginia, a data-center lease supporting a large social media customer became fully operational in January 2026, with sublease income expected to substantially offset lease payments.

Key facts

• We have entered into an operating lease with a data center operator for space in the Virginia area that we contemporaneously subleased to an affiliate of a large social media customer. source
• Both the lease payments and associated sublease income are expected to substantially offset each other. source
• A portion of the space at the subleased data center commenced in 2025, and the remainder of the space commenced in January 2026. source
• The decrease in cash provided by operating activities for the six months ended June 30, 2026, as compared to the same period in 2025, was due to higher lease payments for co-location facilities as we expand our network. source
• We have entered into operating leases for real estate assets related to office space and co-location assets related to space or racks at co-location facilities and related equipment for our servers and other networking equipment. source
• As of June 30, 2026, there have been no significant changes in our obligations under these operating lease arrangements from those reported on Form 10-K for the year ended December 31, 2025, other than normal period-to-period variations. source