Verizon Google dark fiber deal tops $1 billion under AI Connect push
Verizon says a $1 billion-plus Google fiber deal starts a broader AI infrastructure business tied to data centers and edge computing.
By James Whitfield · Staff Writer
3 min read
Verizon’s Google dark fiber deal is worth more than $1 billion, the telecom company said as it tries to turn AI spending into a new growth line. The agreement will use Verizon fiber routes to connect Google data centers, while Verizon also prepares some of its own network offices for small AI-focused data centers.
Verizon disclosed the Google partnership during its second-quarter 2026 earnings call as part of a new business effort called AI Connect. CEO Dan Schulman said on the call that Verizon expects more AI-related agreements by year’s end, with deals that could bring in multiple billions of dollars over the next several years.
What is Verizon’s Google dark fiber deal?
Dark fiber is fiber-optic cable that has been installed but is not actively carrying traffic. In this deal, Verizon said it will provide unused fiber capacity to link Google data centers, a need that has grown as AI systems require more computing capacity spread across large facilities.
Schulman told investors that demand is rising both for connections between data centers and for computing placed closer to users. He cited applications such as robotics, remote surgery and autonomous driving as examples of services that can require very low delays in moving data.
Google’s AI buildout has increased its need for data center infrastructure. Ars Technica reported this month that Google’s AI expansion helped drive a 37 percent increase in the company’s electricity use in 2025.
How Verizon wants to use central offices for AI
Beyond the Google fiber contract, Verizon said it is in the early stages of converting some central offices into small data centers. Central offices are the facilities that hold equipment used to run Internet and mobile networks.
The converted sites are meant to support “inference edge computing,” according to Schulman. AI inference is the stage when a trained model is used to produce results, and edge computing places that work closer to the customer or device to cut latency.
Schulman said Verizon ran a small trial of the concept and sold all available capacity within 24 hours. He described that result as evidence of strong customer demand, though Verizon did not give details on the size or location of the trial.
Verizon had already been removing copper wiring from central offices and replacing older network equipment with fiber-optic technology. The company has been retiring its legacy copper network in favor of fiber, which it says is faster and more power-efficient for broadband service.
Why Verizon has more fiber to sell
Verizon expanded its fiber holdings after completing its $20 billion acquisition of Frontier Communications at the start of 2026. Verizon said the deal increased its fiber footprint from 15 states to 31 states plus Washington, DC.
Selling unused fiber capacity to Google and other AI-focused companies could help Verizon earn revenue from that larger network. Schulman told investors that AI Connect deals should begin affecting revenue and margins next year and grow substantially over the next five to 10 years.
The AI push comes as Verizon continues to reshape its workforce and retail operations. Fast Company reported that Verizon laid off 13,000 workers at the end of 2025, leaving it with just under 90,000 employees, and later shifted 274 retail stores to franchise owners along with 2,500 employees while cutting another 500 corporate roles.
Verizon is presenting AI Connect as an addition to its main mobility and broadband businesses. The company said those core businesses delivered record second-quarter results in 2026.
This story draws on original reporting from Ars Technica.