Verizon Secures Over $1 Billion Dark Fiber Deal with Google

Verizon Communications Inc. (NYSE: VZ) has secured a contract with Google (NASDAQ: GOOGL) valued at over $1 billion to provide dark fiber network connectivity for the tech giant's data centers. The deal was announced by Verizon CEO Dan Schulman on Friday during the company's post-earnings conference call.

Deal Details

The agreement involves Verizon supplying Google with dark fiber, which is unused fiber-optic cable infrastructure. This arrangement allows Google to lease the physical lines and manage its own data traffic between its sprawling data center facilities, providing greater control and scalability for its operations.

The contract's value was confirmed to be more than $1 billion by Schulman. The announcement provides a significant strategic update alongside the company's financial results, highlighting a key growth area for its enterprise and wholesale divisions.

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Strategic Outlook

For Verizon, the deal represents a major win in monetizing its extensive fiber network by serving the needs of hyperscale cloud providers. These long-term contracts provide a stable and significant source of revenue.

Schulman indicated that this agreement is part of a larger push, signaling that more such 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, according to a Reuters report of the call.