Key facts
- Verizon is partnering with Google on a deal exceeding $1 billion for dark fiber connectivity.
- The company is converting its central offices into small data centers to support AI inference.
- Verizon has launched an "AI Connect" initiative to target AI-related revenue.
- CEO Dan Schulman expects multiple billions of dollars in AI revenue over the next several years.
- Verizon's trial of retrofitted data centers sold out capability within 24 hours.
Verizon is aggressively pursuing revenue from the artificial intelligence boom by expanding its data center capabilities and striking significant partnerships. The company announced a deal worth over $1 billion with Google to utilize Verizon's dark fiber network for connecting Google's data centers. Additionally, Verizon is retrofitting its own central offices, previously used for internet and mobile network equipment, into smaller data centers designed to support AI inference workloads with minimal latency.
These efforts are part of a new "AI Connect" business initiative. Verizon CEO Dan Schulman stated during an earnings call that the company anticipates announcing more AI-related deals by year-end, projecting "multiple billions of dollars in revenue over the next several years." He highlighted the exploding demand for data center connectivity and the need for ultra-low latency to power AI applications like robotics and autonomous driving at the edge.
Verizon has already seen strong demand for its retrofitted data center capabilities, with a small trial selling out in 24 hours. The company has been transitioning away from its legacy copper network to fiber-optic technology, a process accelerated by its $20 billion acquisition of Frontier Communications in early 2026, which significantly expanded its fiber footprint. Selling unused dark fiber capacity is seen as a way to help recoup acquisition costs.
These AI-focused ventures are expected to begin impacting Verizon's revenues and margins in the following year and grow substantially over the next decade, complementing its core mobility and broadband services.