Verizon has secured an agreement valued at more than $1 billion with Google to supply dark fiber connectivity for the technology giant's expanding data center network, a deal that underscores the surging demand for AI infrastructure.

Chief Executive Officer Dan Schulman announced the contract during Verizon's post-earnings conference call, describing it as part of a broader effort to grow the company's infrastructure business beyond its traditional telecommunications offerings. Dark fiber refers to unused fiber-optic cables that customers lease to operate their own private network equipment, giving them full control over capacity, routing, and security—capabilities increasingly sought by AI operators whose workloads require massive data transfers between facilities with minimal latency. Under the agreement, Verizon will deliver dark fiber connections that underpin Google's growing fleet of data centers, which depend on high-capacity, low-latency connectivity to support artificial intelligence workloads and cloud computing services.

Rising AI Infrastructure Demand

The agreement illustrates how major telecommunications providers are capitalizing on the rapid buildout of AI infrastructure. As hyperscale technology companies pour billions of dollars into new data centers, dependable fiber networks have emerged as a critical component for linking facilities and managing the resulting surge in data traffic. Rival telecom operators have pursued similar strategies—Lumen Technologies, for instance, disclosed multibillion-dollar dark fiber deals with Microsoft and others in 2024—signaling that carrier-grade fiber portfolios are becoming a monetizable asset class in the AI economy.

Schulman indicated that Verizon's infrastructure business may continue to expand. He said the company anticipates announcing additional agreements before the end of the year that could collectively generate multiple billions of dollars in revenue over the next several years.

Key details of the deal:

• The contract is valued at more than $1 billion.
• Verizon will provide dark fiber connectivity for Google's data centers.
• Further infrastructure agreements are expected later this year.

Verizon Diversifies Beyond Traditional Wireless

The Google agreement comes as Verizon continues to broaden its revenue streams while strengthening its core wireless business. Alongside the infrastructure contract, the company raised its full-year adjusted earnings outlook, driven by stronger-than-expected subscriber growth and improved profitability.

The deal also reflects the deepening convergence of telecommunications and AI infrastructure. As cloud providers accelerate capital spending to support AI services, demand for high-performance fiber networks is creating new, long-term revenue opportunities for telecom operators. For Verizon specifically, the partnership draws on a nationwide fiber footprint the company has spent years expanding under its multi-billion-dollar network investment program, positioning those assets to serve customers well beyond traditional wireless backhaul.

For Verizon, the Google partnership ranks among its largest infrastructure contracts to date and reinforces its strategy of leveraging its nationwide fiber assets to serve the fast-growing AI economy.