Verizon (VZ) Signs $1B+ Google Deal for Dark Fiber Data Center Network

TLDR

• Verizon signed a deal with Google worth over $1 billion for dark fiber connectivity to Google’s data centers.
• The deal is part of Verizon’s push to build a standalone connectivity business for multinational clients.
• Verizon expects to announce more deals by year-end, with combined value of multiple billions in revenue over several years.
• The company remains on track to deliver at least $9 billion in operating expense and capex savings.
• Verizon’s consumer value proposition, launched mid-June, is performing beyond expectations.

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Verizon (VZ) has signed a deal with Google (GOOGL) worth more than $1 billion, the company revealed on its second-quarter earnings call on Friday.

$GOOGL SIGNS $1 BILLION+ DATA CENTER FIBER DEAL WITH VERIZON

Verizon $VZ has secured a deal worth more than $1 billion to provide dark fiber connectivity for Google data centers.

Dark fiber gives Google dedicated network capacity that it can operate with its own equipment.… pic.twitter.com/gqYfnh9YGN

— Wall St Engine (@wallstengine) July 24, 2026

The agreement will see Google use Verizon’s dark fiber network to connect its data centers. CEO Dan Schulman confirmed the deal on the post-earnings call.3

Verizon Communications Inc., VZ

Dark fiber refers to unused fiber optic cable infrastructure that can be leased out to third parties for high-capacity data transmission.

Schulman said additional deals are in the pipeline. “We have other deals that we expect to announce by year end that taken together are expected to be worth multiple billions of dollars in revenue over the next several years,” he said.

The Google agreement is part of Verizon’s broader strategy to build out a standalone connectivity business. The focus is on serving large multinational organizations that need reliable, high-capacity network infrastructure.

More Deals Expected by Year-End

Verizon is positioning itself as a key infrastructure partner for major tech companies. The company said it expects to announce further agreements before the end of 2026.

The combined value of those upcoming deals, together with the Google contract, is expected to run into multiple billions of dollars over the coming years.

That signals Verizon is making real progress in turning its fiber network assets into a revenue-generating business beyond traditional telecom.

Cost Savings on Track

On the financial side, Verizon said transformation initiatives from the prior quarter are producing tangible results. The company remains on track to hit at least $9 billion in combined operating expense and capital expenditure savings.

Customer economics also continued to improve during the quarter. Verizon said it expects costs tied to customer acquisition and retention to keep trending in the right direction.

The company’s consumer value proposition, which launched in mid-June, is already performing ahead of expectations — a bright spot heading into the second half of the year.

Verizon did not disclose the specific terms of the Google contract beyond the $1 billion-plus figure confirmed by Schulman on the earnings call.