Verizon and Google Sign $1 Billion Dark Fiber Deal to Connect Hyperscaler Data Centers

Verizon has finalized a $1 billion dark fiber agreement with Google to provide connectivity between the tech giant's data centers, as demand for high-capacity network infrastructure surges alongside the AI and cloud computing boom. The deal underscores the growing reliance of hyperscalers on telecom carriers' physical fiber assets to support massive data flows.

Verizon CEO Dan Schulman confirmed the pact during the company's second-quarter earnings call last week, stating that Verizon will supply Google with dark fiber—unlit optical fiber that the hyperscaler can activate and manage on its own—to interconnect its data centers. Schulman hinted that additional agreements are in the pipeline, describing them as "expected to be worth multiple billions of dollars in revenue over the next several years." He characterized the contracts as "long-duration, high-quality contracted revenue streams from some of the most demanding infrastructure customers in the world."

The deal reflects a strategic shift for Verizon, which is leveraging its extensive physical network of fiber routes and central offices to tap into the exploding data center connectivity market. Schulman noted that the company's fiber assets—whether dark or lit—are "suddenly in tremendous demand for that data center connectivity." He highlighted that Verizon owns thousands of central offices, many of which are being retrofitted by removing copper infrastructure to become "power ready, permitted, fully redundant" remote data centers. A small trial of this concept sold out its capacity within 24 hours, illustrating strong market appetite.

Beyond fiber, Schulman emphasized the role of edge infrastructure in supporting ultra-low-latency applications such as robotics, remote surgery, and autonomous driving, which are driving inference model workloads at the network edge. "We’re seeing large demand for that as well," he added.

Financially, Verizon reported total revenue of $34.25 billion for the quarter, down 0.7% year-over-year. However, mobility and broadband service revenue grew 2.8%, with expectations of approximately 4% growth in the fourth quarter. The carrier added 550,000 total mobility and broadband customers in Q2, more than double the 230,000 additions in the same period last year. Postpaid phone net additions reached 184,000 in Q2, the highest for a second quarter in five years.

Separately, Schulman extended his contract as Verizon CEO through December 31, 2028, adding one year to his tenure. He joined the company as CEO in October 2025 after leading PayPal.