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

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

Fri, July 24, 2026 at 9:09 PM GMT+3 1 min read

• VZ +5.84%
• GOOG +0.24%

Verizon Communications signed a dark fiber agreement with Alphabet'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.