Verizon scores $1 billion Google deal to connect its data centers to dark fiber - but is this only the beginning?

Verizon signs $1 billion dark fiber data center connectivity deal with GoogleThe telecoms company plans to use its fiber assets to connect AI data centers across the USFiber network growth is replacing copper lines and activating previously unused dark fiber linesVerizon has completed a $1 billion deal with Google to provide data center connectivity using pre-existing dark fiber infrastructure. The move appears to be the first of several arrangements to leverage dark fiber and the desire for AI data centers to collaborate on compute tasks.CEO Dan Schulman highlighted how copper is being ripped out of central offices to replace the outdated cabling with modern fiber to meet AI demand in workplaces. Verizon previously announced its AI Connect initiative, which aims to support AI infrastructure growth, and the Google deal appears to be the first step in that initiative.Verizon expects its AI Connect deals to grow over the next decade.Verizon’s renewed momentumVerizon has made some strong moves in the past few months, completing the $20 billion purchase of Frontier Communications earlier in 2026, giving it an expanded fiber footprint across 31 states (up from 15), as well as Washington, DC.Meanwhile, the company has also been experimenting with trials to support smaller AI-driven businesses, such as autonomous robotaxi fleets, where Schulman reported (during an earnings call) the company “sold out capability in 24 hours. So we’re seeing a large 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, ending up within Verizon’s portfolio as the result of acquisitions such as the MCI buyout in 2006.Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!Is a turnaround on the Verizon?Verizon has undergone a transformation under Schulman, one that could put it in a strong position against T-Mobile and AT&T.New Street Research’s David Barden observed that Verizon’s recent moves and Q2 results are “adding incremental pressure on T-Mobile and AT&T to defend share rather than take it. It also may suggest that cable's wireless push and cable's own broadband churn is where the next leg of competitive pressure is coming from.”Beyond the churn of domestic and commercial mobile and broadband, Verizon’s strategy to support the growth of AI data centers seems to be a strong bet.With more installations being approved and coming online with almost weekly regularity, the $1 billion Google deal would seem to be the first of many, with Verizon in a position to potentially dominate direct fiber links between AI data centers. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.