- Verizon signs $1 billion dark fiber data center connectivity deal with Google
- The telecommunications company plans to use its fiber assets to connect AI data centers across the US.
- Fiber network growth is replacing copper lines and activating previously unused dark fiber lines
Verizon has closed a billion-dollar deal with Google to provide data center connectivity using pre-existing dark fiber infrastructure. The move appears to be the first of several deals to take advantage of dark fiber and the desire for AI data centers to collaborate on computing tasks.
CEO Dan Schulman highlighted how copper is being removed from central offices to replace outdated cabling with modern fiber to meet the demand for artificial intelligence in the workplace. Verizon previously announced its AI Connect initiative, which aims to support the growth of AI infrastructure, and the deal with Google appears to be the first step in that initiative.
Verizon expects its AI Connect deals to grow over the next decade.
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Verizon’s renewed push
Verizon has made some big moves in recent months, completing its $20 billion purchase of Frontier Communications in early 2026, giving it an expanded fiber footprint in 31 states (up from 15), as well as Washington, DC.
Meanwhile, the company has also been experimenting with tests to support smaller AI-powered businesses, such as fleets of autonomous robotaxi, where Schulman reported (during an earnings call) that the company “sold out capacity in 24 hours. So we’re seeing a lot of demand for that as well.”
Focusing on its existing dark fiber infrastructure, some of which was installed in the 1990s and early 2000s, allows Verizon to focus on deals with Google and other AI companies and reduce capital outlays.
Much of the dark fiber has remained largely untapped for years and ended up within Verizon’s portfolio as a result of acquisitions such as MCI in 2006.
Is there a change of course at Verizon?
Verizon has undergone a transformation under Schulman, a transformation that could put it in a strong position against T-Mobile and AT&T.
New Street Research’s David Barden noted that Verizon’s recent moves and second-quarter results are “adding incremental pressure on T-Mobile and AT&T to defend their share rather than take it. It may also suggest that cable’s wireless push and cable’s own broadband rotation is where the next stage of competitive pressure is coming from.”
Beyond the domestic and commercial mobile and broadband rotation, Verizon’s strategy to support AI data center growth appears to be a strong bet.
With more installations approved and coming online with almost weekly regularity, Google’s $1 billion deal would appear to be the first of many, with Verizon positioned to potentially dominate direct fiber links between AI data centers.
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