GOOG · 10-Q · 2026Q2 · Full report

Datacenter Lease Burden

Alphabet Inc. · 2026-07-23 · Importance 64 · Surprise 42

As of June 30, 2026, Alphabet had $85.2 billion of future payments under primarily data-center leases that had not yet commenced. These leases are scheduled to commence between 2026 and 2031 and have non-cancelable terms ranging from one to 26 years. Alphabet also entered into a short-term lease in June 2026 with an approximately $5.8 billion non-cancelable commitment beginning in the third quarter of 2026. The obligations represent a material fixed-cost commitment supporting data-center and AI infrastructure expansion.

Key facts

• As of June 30, 2026 Alphabet had entered into leases not yet commenced with future lease payments of $85.2 billion that will commence between 2026 and 2031 with non-cancelable terms between one and 26 years. source
• In June 2026 Alphabet entered into a short-term lease agreement with a non-cancelable commitment of approximately $5.8 billion, which will commence in the third quarter of 2026. source
• As of June 30, 2026 the amount of total undiscounted future lease payments under operating and finance leases was $21.3 billion and $2.9 billion, respectively. source