Verizon and Google agree on data center network deal exceeding $1 billion
Telecom operator Verizon has finalized a network infrastructure deal with Google valued at over $1 billion. The agreement involves Verizon providing data center connectivity using its pre-laid, unused "dark fiber" network assets.
US telecom operator Verizon announced a network infrastructure transaction with Google valued at over $1 billion. The deal will see Verizon supply Google with data center connectivity services utilizing the operator's pre-installed but currently inactive "dark fiber" network resources.
Verizon CEO Dan Schulman characterized the global build-out of artificial intelligence infrastructure as one of the largest capital cycles of his generation. The company is well-positioned to capitalize on this trend due to its extensive fiber network across North America. Similar AI infrastructure contracts are anticipated to generate billions of dollars in revenue for Verizon in the coming years.
In parallel, Verizon is converting its central offices into AI edge computing data centers. This initiative is in its early stages but has attracted interest from various partners seeking mature infrastructure assets.
For the second quarter, Verizon reported total operating revenue of $34.3 billion, a slight decrease of 0.7% year-over-year. Net income fell 22.9% to $3.9 billion. Revenue from mobile and broadband services saw a 2.8% increase, while equipment revenue declined by nearly 20%.