Verizon signs $1B deal to connect Google data centers with dark fiber

In short: Verizon says it has a more than $1 billion deal with Google to connect Google data centers, and it is turning some of its network buildings into small data centers for AI.

What happened

Verizon shared new details about an effort it calls “AI Connect” during its second-quarter 2026 earnings call. The company said it has a deal worth more than $1 billion to link Google data centers using Verizon’s “dark fiber,” which is fiber-optic cable that is already in the ground but not currently being used (like unused lanes on a private highway).

Verizon also said it is converting some of its central offices into small, remote data centers. Central offices are buildings that hold the physical equipment that runs phone and internet networks. Verizon said it is removing old copper wiring and upgrading to fiber, and in some locations it plans to add computing equipment so customers can run AI “inference” (when an AI system gives answers or makes decisions) closer to where the data is coming from.

Verizon CEO Dan Schulman said a small trial for these remote data centers sold out in 24 hours. He said the goal is lower delay, which matters for time-sensitive uses like robotics, remote surgery, and autonomous driving.

Why it matters

Many AI services work better when they can send data quickly and get results back fast. By selling connections between large data centers and by hosting smaller data centers closer to users, Verizon is trying to earn new revenue beyond its usual phone and home internet business. The company said these deals should start affecting revenue and profit next year and grow over the next five to 10 years.

Source: Arstechnica