A $1 billion Google data-centre interconnect contract has moved Verizon's AI-infrastructure pitch from network capacity to signed revenue.

RCR Wireless News reports that the carrier expects wider AI-connectivity deals to begin adding multiple billions of dollars from 2027.

The Verizon Google AI cloud and edge sales in 2027 will start with dark fibre, optical transport, and metro networks rather than consumer mobile plans.

On Verizon's July 24 Q2 call, chief executive Dan Schulman framed the Google agreement as the first large contract in a pipeline built around hyperscaler and enterprise demand for data-centre-to-data-centre links.

Google Deal Opens AI Connect Pipeline

The AI Connect portfolio covers optical lit transport, custom dark-fibre routes, hosted edge data centres, private 5G, programmable network fabric, and self-service tools.

Verizon is targeting this package at customers needing low-latency links among AI clusters, model platforms, and cloud regions.

Schulman indicated that the current pipeline extends beyond the Google contract.

Additional agreements are expected by year-end, with the company presenting the opportunity as multibillion-dollar contracted revenue across a multiyear period.

The revenue layer begins in 2027, while AI Connect margins were presented as at least in line with Verizon's current margin structures.

Central Offices Become Edge Sites

The carrier's edge plan depends on sites originally built for another telecom era.

Verizon has thousands of central offices, many of which are being retrofitted as power-ready, permitted, and fully redundant remote data centres for inference workloads closer to users.

A small trial of that central-office model sold out capability in 24 hours, according to Q2 call materials.

Dark or lit fibre can then connect cloud regions, AI clusters, and edge premises depending on whether the customer wants to control the electronics or buy a managed transport service.

The call materials shift the demand sequence from rack-level optimisation to data-centre, cluster, and transport-network links.

Fibre routes, permitted sites, and managed transport capacity support that work alongside Verizon's radio and handset business.

Q2 Results Show Leaner Telco Base

The AI-connectivity strategy sits on a core business that Verizon also presented as improving.

The operator recorded 184,000 postpaid phone net additions in the quarter and a fixed wireless and fibre broadband base of about 17.1 million connections.

RCR Wireless News reported mobility and broadband service revenue at about $23.4 billion in the quarter, adjusted EBITDA at $13.7 billion, and free cash flow at $6.4 billion.

The same account noted Verizon's full-year free-cash-flow growth outlook at 9-10 percent and the buyback ceiling at $4.5 billion.

BT Venture Adds Enterprise Scope

The same call also covered Verizon's proposed 50/50 joint venture with BT Group.

The planned enterprise business would have about $4 billion in scope, around 3,000 customers, and operations spanning 180-odd countries, with Verizon paying $625 million as an equalisation payment and targeting about $200 million in annual savings.

The 2027 revenue case is still anchored by one named customer.

Signed terms for the central-office data-centre retrofits and additional AI-connectivity customers remain unpublished.