Verizon announces $1B dark fiber deal with Google for AI data centers

Verizon has announced a landmark deal worth over $1 billion to connect Google data centers using its dark fiber network, marking a major push into the AI infrastructure market. The telecom giant revealed the partnership during its second-quarter 2026 earnings call, alongside plans to convert old copper-wired central offices into small data centers optimized for AI inference workloads. CEO Dan Schulman described the deal as part of a new "AI Connect" initiative and hinted at more agreements to come, saying Verizon expects to announce additional AI-related deals worth "multiple billions of dollars in revenue over the next several years" by the end of the year.

The deal affects both Google, which gains high-capacity connectivity for its data centers, and Verizon, which is repositioning itself to capitalize on surging demand for AI computing power. Schulman emphasized the need to connect data centers efficiently to meet the "ever-exploding need for compute," while also pushing inference capabilities to the edge for applications like robotics, remote surgery, and autonomous driving that require ultra-low latency.

This matters because it signals a shift in how telecom companies are monetizing their infrastructure amid the AI boom. By repurposing legacy assets like dark fiber and central offices, Verizon aims to compete with other network providers in serving hyperscalers and AI firms. The company did not disclose the exact timeline for the Google deal or the conversion of central offices, but Schulman’s comments suggest a rapid expansion of these efforts in the coming months.

Background: Verizon has long owned extensive dark fiber and copper networks, but this is its first publicly disclosed major AI infrastructure deal. The company has been under pressure to find new revenue streams as traditional telecom services face slower growth. The Google partnership and central office conversions represent a strategic pivot toward high-value data center connectivity and edge computing.

Next steps: Verizon plans to announce additional AI-related deals by the end of the year, which Schulman said would be worth multiple billions of dollars over several years. The company will also continue converting central offices into edge data centers, likely targeting locations near major metropolitan areas to support low-latency AI applications. Investors will be watching for further details on revenue projections and the pace of infrastructure deployment.