Verizon secures $1 billion Google deal to power AI infrastructure with dark fiber network

Verizon seeks AI profits with mini data centers, $1B dark fiber deal with Google

Verizon is seeking to tap into Silicon Valley's AI spending in a big way. The telecom giant revealed a deal worth more than $1 billion to link Google data centers using Verizon's dark fiber routes -- and it's also tearing copper wiring out of central offices as it converts them into small data centers suitable for supporting AI inference workloads. The telecom company publicly disclosed the Google partnership and data center conversion efforts as part of a new "AI Connect" business initiative during an earnings conference call covering the second quarter of 2026. Verizon also expects to announce additional AI-related deals by the end of the year that would be "worth multiple billions of dollars in revenue over the next several years," said Dan Schulman, CEO of Verizon Communications, during the earnings call. "Now it really is about, 'how do you connect data center to data center to assure that you can optimize to maximize the ever-exploding need for compute?'" Schulman said. "And while that data center connectivity demand is exploding, there's an equal amount of desire and demand to power inference models and applications that need ultra-low latency, like robotics or remote surgery, autonomous driving, and move that out into the edge, as opposed to these big, massive data centers." Beyond repurposing dark fiber for hyperscalers' AI data centers, Verizon is in the early stages of retrofitting some of its own central offices -- locations that house the physical equipment for Internet and mobile networks -- to become small data centers. Such "remote data centers" aim to support "inference edge computing" with minimal data latency for customers' deployments of AI-driven services, such as autonomous robotaxi fleets or robotics applications, according to Schulman. "We did a small trial on that and sold out capability in 24 hours," Schulman said during the earnings call. "So we're seeing a large demand for that as well." The telecom company had already been removing copper wiring from central offices and upgrading them with fiber-optic technology, even before looking to convert some offices into AI infrastructure for edge computing. That comes as Verizon continues retiring its legacy copper network in favor of faster and more power-efficient fiber-optic cables for broadband services. Verizon also significantly grew its fiber network after finalizing a $20 billion acquisition of Frontier Communications at the start of 2026, which expanded Verizon's fiber footprint from 15 states to 31 states along with Washington, DC. So selling some unused dark fiber capacity to Google and other AI-focused tech companies could help recoup some of those acquisition costs. Verizon has also been cutting jobs even after laying off 13,000 workers at the end of 2025, leaving a workforce of just under 90,000 employees at the end of last year. Most recently, the company transferred 274 retail stores to franchise owners along with 2,500 employees and cut another 500 positions within its own corporate structure. The telecom company expects its AI Connect deals to "begin to impact our revenues and margins beginning next year and grow substantially over the next five to 10 years," Schulman said in response to a question during the earnings call. That would come on top of Verizon's core mobility and broadband services that saw record second-quarter results this year.

Verizon scores $1 billion Google deal to connect its data centers to dark fiber - but is this only the beginning?

* Verizon signs $1 billion dark fiber data center connectivity deal with Google * The telecoms company plans to use its fiber assets to connect AI data centers across the US * Fiber network growth is replacing copper lines and activating previously unused dark fiber lines Verizon has completed a $1 billion deal with Google to provide data center connectivity using pre-existing dark fiber infrastructure. The move appears to be the first of several arrangements to leverage dark fiber and the desire for AI data centers to collaborate on compute tasks. CEO Dan Schulman highlighted how copper is being ripped out of central offices to replace the outdated cabling with modern fiber to meet AI demand in workplaces. Verizon previously announced its AI Connect initiative, which aims to support AI infrastructure growth, and the Google deal appears to be the first step in that initiative. Verizon expects its AI Connect deals to grow over the next decade. Verizon's renewed momentum Verizon has made some strong moves in the past few months, completing the $20 billion purchase of Frontier Communications earlier in 2026, giving it an expanded fiber footprint across 31 states (up from 15), as well as Washington, DC. Meanwhile, the company has also been experimenting with trials to support smaller AI-driven businesses, such as autonomous robotaxi fleets, where Schulman reported (during an earnings call) the company "sold out capability in 24 hours. So we're seeing a large demand for that as well." Focusing on its existing dark fiber infrastructure, some of which was installed in the 1990s and early 2000s, allows Verizon to focus on deals with Google and other AI companies and reduce capital outlays. Much of the dark fiber has remained largely untapped for years, ending up within Verizon's portfolio as the result of acquisitions such as the MCI buyout in 2006. Is a turnaround on the Verizon? Verizon has undergone a transformation under Schulman, one that could put it in a strong position against T-Mobile and AT&T. New Street Research's David Barden observed that Verizon's recent moves and Q2 results are "adding incremental pressure on T-Mobile and AT&T to defend share rather than take it. It also may suggest that cable's wireless push and cable's own broadband churn is where the next leg of competitive pressure is coming from." Beyond the churn of domestic and commercial mobile and broadband, Verizon's strategy to support the growth of AI data centers seems to be a strong bet. With more installations being approved and coming online with almost weekly regularity, the $1 billion Google deal would seem to be the first of many, with Verizon in a position to potentially dominate direct fiber links between AI data centers. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.

Verizon signs $1 billion dark fiber deal with Google for AI data centers

Verizon CEO Dan Schulman said the company expects to announce additional AI infrastructure deals by year-end worth multiple billions of dollars Verizon $VZ Communications signed a dark fiber agreement with Alphabet $GOOGL's Google worth more than $1 billion, the company announced Friday, positioning the telecom carrier as a connectivity provider for AI data center buildouts. CEO Dan Schulman disclosed the deal during Verizon's second-quarter earnings call. Under the agreement, Verizon will provide dark fiber to connect Google's data centers. "The build out of AI infrastructure across the United States is one of the largest capital cycles of our lifetime, and Verizon is uniquely positioned to participate in it," Schulman said. Verizon stock was up more than 3% in Friday's opening trade. Shares of Alphabet and Verizon both moved on the news, with Alphabet's Class A stock up about 1%. Schulman described the Google deal as the start of a broader push into AI infrastructure connectivity. He said Verizon expects to announce additional agreements by year-end that would generate multiple billions of dollars in revenue over the next several years. He framed those future contracts as stable, extended-term arrangements with some of the most technically rigorous customers in the infrastructure space. Schulman used the word "consequential" to describe the announcement, saying it offers a preview of the direction Verizon's revenue trajectory is headed. The company is tapping its long-haul and metro fiber assets to meet demand from hyperscalers racing to build out AI infrastructure. Schulman said that network, though originally built for a different technological era, now fits precisely what is needed to link AI data centers, compute clusters, and geographic regions together.

Verizon Lands $1 Billion Google Deal as AI Infrastructure Demand Soars | PYMNTS.com

In the recently signed agreement, Verizon dark fiber will be used to connect Google's data centers. In the other deals that the company expects to announce by year's end, Verizon will earn "multiple billions of dollars in revenue" over the next several years, Schulman said. "These are long-duration, high-quality contracted revenue streams from some of the most demanding infrastructure customers in the world," Schulman said. "We believe that this is just the beginning," Schulman added. "The build-out of AI infrastructure across the United States is one of the largest capital cycles of our lifetime." Verizon is uniquely positioned to participate in this build-out because it owns an extensive long-haul and metro fiber footprint and it has built the carrier-grade, low-latency, highly resilient transport network that hyperscalers need to connect compute, models and regions, Schulman said. The company has also begun retrofitting many of its central offices into data centers for inference edgecomputing, and it is already talking with multiple partners who are eager to use these power-ready and permitted locations, he said. "We are moving quickly to expand our TAM [total addressable market] in the rapidly growing AI infrastructure market," Schulman said. "The agreements we have signed are the leading edge of a strategy that will become a meaningful, incremental leg of growth for Verizon." Verizon announced in a January 2025 press release that it launched a strategy and suite of products and solutions called Verizon AI Connect that is designed to serve hyperscalers, cloud providers and global enterprises by managing AI resource-intensive workloads. The company said at the time that Google Cloud and Meta were among the early adopters of these solutions. In a Friday earnings release, Schulman said: "Our core connectivity business is gaining momentum, and with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon's growth trajectory." PYMNTS reported Wednesday that during Google parent company Alphabet's second-quarter earnings call, the company announced that it had raised its 2026 capital spending forecast from the previous $180 billion to $190 billion to the new forecast of $195 billion to $205 billion.