What to know:
- The agreement will link Google data centers, with more multi-billion deals expected this year.
- Low-latency infrastructure is key for validators, exchanges, and DeFi/L2 growth. Bottlenecks pose systemic risk.
- Tech giants are expanding physical networks, making connectivity as critical as software for blockchain and AI.
Google signed a deal with Verizon to get more than $1 billion worth of dark fiber connectivity for its data centers, Reuters said. The contract is an example of how cloud giants like Google are taking advantage of dark fiber networks to support services such as AI, cloud, and distributed computing that have blockchain at their heart.
The Deal and Key Players
Google will be served dark fiber by Verizon via which the company will connect their data centers. Dan Schulman, CEO of Verizon, stated that by the end of the year, the company plans to reveal other such agreements, “which are expected to generate hundreds of millions of dollars’ worth of revenue for the company in the years ahead.”
Source: BBC
Alongside AWS and Azure, Google continues to be the core provider offering node hosting, RPC services, and data indexing to Web3 developers.
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Fiber Demand Rises for Web3 Scaling
Blockchain networks, exchanges, and institutions rely on a highly-connected low-latency environment between data centers to carry out validator operations, market making, and real-time indexing. As DeFi, L2 rollups, and tokenized assets scale, infrastructure bottlenecks becoming a systemic risk.
The Google-Verizon deal is indicative of the growing demand for reliable fiber to perform AI inference and blockchain data processing simultaneously.
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Infrastructure Becomes the New Competitive Edge
A larger perspective and what will come after that: The deal goes hand-in-hand with the overall tendency of major techs to increase their physical infrastructure to satisfy demands of AI and Web3 computing. For investors and organizations, it’s a clue that physical infrastructure and not just software will become the basis of one’s competitive edge.
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