Verizon disclosed a partnership worth more than $1 billion to connect Google data centers using its dark fiber routes during the company's second quarter 2026 earnings conference call. The telecom giant is simultaneously converting central offices into small data centers for AI inference workloads by removing copper wiring, as part of a new 'AI Connect' business initiative. CEO Dan Schulman stated the company expects to announce additional AI-related deals by the end of the year worth 'multiple billions of dollars in revenue over the next several years.' The strategy reflects Verizon's infrastructure pivot to capitalize on Silicon Valley's AI compute and connectivity demands.
Verizon Secures Google Dark Fiber Deal Worth Over $1 Billion
Verizon publicly disclosed the Google partnership during the second quarter 2026 earnings conference call. The deal involves linking Google data centers using Verizon's dark fiber routes, with a total value exceeding $1 billion. Schulman described the core business challenge as 'how do you connect data center to data center to assure that you can optimize to maximize the ever-exploding need for compute.' The company characterized the partnership as part of addressing hyperscalers' infrastructure requirements for AI workloads.
Central Office Conversions Target AI Inference Edge Computing
Verizon is retrofitting central offices—locations housing physical equipment for Internet and mobile networks—into small data centers. The conversion process involves tearing out copper wiring to create facilities suitable for AI inference workloads. Schulman stated these 'remote data centers' aim to support 'inference edge computing' with minimal data latency for AI-driven services including autonomous robotaxi fleets, robotics applications, remote surgery, and autonomous driving. The company described the initiative as being in early stages.
Verizon Projects Multi-Billion Dollar AI Deal Pipeline
Schulman stated during the earnings call that Verizon expects to announce additional AI-related deals by the end of the year. The CEO specified these future agreements would be 'worth multiple billions of dollars in revenue over the next several years.' He noted that data center connectivity demand is expanding alongside requirements to 'power inference models and applications that need ultra-low latency' at the network edge rather than in centralized data centers.
FAQ
What deal did Verizon announce with Google during the Q2 2026 earnings call?
Verizon disclosed a partnership worth more than $1 billion to link Google data centers using Verizon's dark fiber routes. The company publicly revealed the agreement as part of its new 'AI Connect' business initiative during the second quarter 2026 earnings conference call.
How is Verizon converting central offices for AI infrastructure?
Verizon is retrofitting central offices by removing copper wiring to create small data centers suitable for AI inference workloads. These converted facilities, described as 'remote data centers,' are designed to support edge computing applications requiring ultra-low latency, such as robotics, remote surgery, and autonomous driving. The company stated the conversion program is in early stages.
