Verizon (VZ) has signed an agreement with Google (GOOGL) worth more than $1 billion to provide dark fiber connectivity for Google data centers, the company disclosed on its second-quarter earnings call on Friday.

The deal will allow Google to use Verizon’s dark fiber network to connect its data centers. Verizon CEO Dan Schulman confirmed the agreement during the company’s post-earnings call, according to the source report.

Dark fiber refers to unused fiber optic cable infrastructure that can be leased to third parties for high-capacity data transmission. In this arrangement, dark fiber gives Google dedicated network capacity that it can operate using its own equipment.

The agreement comes amid surging demand for data center interconnection driven by artificial intelligence and cloud computing workloads, which require high-bandwidth, low-latency links between facilities. Hyperscale technology companies have been increasingly securing dedicated fiber infrastructure to support their expanding data center footprints, creating a growing revenue opportunity for telecommunications providers with extensive fiber assets.

Wall St Engine post:

$GOOGL SIGNS $1 BILLION+ DATA CENTER FIBER DEAL WITH VERIZON

Verizon $VZ has secured a deal worth more than $1 billion to provide dark fiber connectivity for Google data centers.

Dark fiber gives Google dedicated network capacity that it can operate with its own equipment.… pic.twitter.com/gqYfnh9YGN

— Wall St Engine (@wallstengine) July 24, 2026

Schulman said Verizon has additional agreements in development and expects to announce more transactions before the end of the year. “We have other deals that we expect to announce by year end that taken together are expected to be worth multiple billions of dollars in revenue over the next several years,” he said.

The Google agreement is part of Verizon’s broader effort to build a standalone connectivity business. The strategy is focused on serving large multinational organizations that require reliable, high-capacity network infrastructure.

More Deals Expected by Year-End

Verizon is positioning itself as an infrastructure partner for major technology companies and other large enterprise customers. The company said it expects to announce further agreements before the end of 2026.

Together with the Google contract, the expected upcoming deals are projected to represent multiple billions of dollars in revenue over the next several years, according to Schulman’s comments on the call.

The push reflects Verizon’s effort to generate revenue from its fiber network assets beyond its traditional telecommunications business. As major cloud and AI operators scale their infrastructure, demand for dedicated, privately operated network capacity has intensified, positioning fiber-asset owners like Verizon to capture enterprise spending that increasingly flows toward data center connectivity. The company did not identify the other potential customers or provide additional details about the expected agreements.

Cost Savings Remain on Track

Verizon also said transformation initiatives announced in the prior quarter are producing tangible results. The company remains on track to deliver at least $9 billion in combined operating expense and capital expenditure savings.

Customer economics continued to improve during the quarter, according to the company. Verizon said it expects costs related to customer acquisition and retention to continue moving in the right direction.

The company’s consumer value proposition, launched in mid-June, is performing ahead of expectations. Verizon described that performance as a positive development as it moves into the second half of the year.

Verizon did not disclose specific terms of the Google contract beyond the more than $1 billion value confirmed by Schulman on the earnings call.