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FinanceVerizon signs $1B+ dark fiber deal with Google for AI data center connectivity
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Verizon Communications announced a dark fiber agreement with Alphabet's Google worth over $1 billion, positioning the telecom carrier as a key connectivity provider for AI data center infrastructure. CEO Dan Schulman disclosed the deal during Verizon's second-quarter earnings call, stating that Verizon will provide dark fiber to connect Google's data centers. Schulman described the AI infrastructure buildout as one of the largest capital cycles of the lifetime and said Verizon is uniquely positioned to participate. Verizon stock rose over 3% following the announcement, while Alphabet shares gained about 1%. Schulman indicated this is the start of a broader push, with additional agreements expected by year-end that could generate multiple billions in revenue over several years. The company is leveraging its long-haul and metro fiber assets originally built for a different era but now suited for linking AI data centers and compute clusters.
Source report
By: Cris Tolomia Source: Quartz Time: Fri, July 24, 2026 at 11:09 AM PDT Read Time: 1 min
Verizon Communications has signed a dark fiber agreement with Alphabet's Google valued at more than $1 billion, the company announced Friday. The deal positions the telecom carrier as a connectivity provider for AI data center buildouts.
CEO Dan Schulman disclosed the agreement during Verizon's second-quarter earnings call. Under the terms, 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.
Market Reaction:
- Verizon stock rose more than 3% in Friday's opening trade
- Alphabet's Class A stock gained approximately 1%
Schulman described the Google deal as the beginning of a broader push into AI infrastructure connectivity. He indicated that Verizon expects to announce additional agreements by year-end, which would generate multiple billions of dollars in revenue over the next several years. He characterized these 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, stating that it offers a preview of the direction Verizon's revenue trajectory is headed.
The company is leveraging its long-haul and metro fiber assets to meet demand from hyperscalers racing to build out AI infrastructure. Schulman noted that the 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.
Tickers: VZ, GOOG
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Verizon signs $1 billion dark fiber deal with Google for AI data centers