Verizon secures $1B dark fiber deal with Google, converts central offices for AI workloads

Verizon's AI Connect Initiative

Verizon publicly disclosed its new "AI Connect" business initiative during an earnings conference call for the second quarter of 2026. This initiative includes a significant deal with Google and plans to repurpose existing infrastructure for AI applications.

Google Dark Fiber Deal

Verizon revealed a deal worth over $1 billion to link Google data centers. This partnership utilizes Verizon’s dark fiber routes to provide connectivity between Google's facilities, addressing the demand for data center-to-data center connections to optimize compute resources.

Central Office Conversion for AI

Beyond the Google deal, Verizon is converting some of its central offices into small data centers. These repurposed locations will support AI inference workloads, particularly for applications requiring ultra-low latency such as robotics, remote surgery, and autonomous driving. This strategy aims to move inference models closer to the edge.

Future AI Revenue Expectations

Verizon CEO Dan Schulman stated that the company anticipates announcing additional AI-related deals by the end of the year. These future agreements are expected to generate multiple billions of dollars in revenue over the next several years, indicating Verizon's focus on expanding its presence in the AI infrastructure market.