Verizon signs more than $2 billion AWS fiber deal for AI infrastructure

Verizon has signed an agreement worth more than $2 billion with Amazon Web Services to provide high-capacity fiber connections for the cloud company’s data centers, adding a major commercial commitment to the telecommunications industry’s role in AI infrastructure.

The deal, disclosed with Verizon’s third-quarter results on October 26, connects the AI investment cycle to the networks that move data between computing facilities. Verizon described the arrangement as a framework for expanding distributed computing and supporting the real-time demands of generative and agentic AI.

Reuters reported that Chief Executive Dan Schulman said Verizon was also in discussions with other hyperscalers, neocloud providers and enterprise customers about supplying dark or lit fiber. Those discussions are separate from the signed AWS agreement.

Fiber demand grows within an unchanged spending plan

Verizon kept its 2026 capital expenditure forecast at $16 billion to $16.5 billion, including investment tied to its AI Connect business. The AWS contract’s value should therefore be read as a commercial agreement, rather than an announcement of $2 billion in additional Verizon capital spending.

The company also raised its annual financial outlook for the third consecutive quarter. It now expects adjusted earnings of $5.04 to $5.06 per share, up from $4.99 to $5.04. Third-quarter revenue was $34.3 billion.

For infrastructure companies, the agreement puts fiber alongside data-center construction as a channel for AI-related demand. The details that would turn that demand into identifiable delivery work include network routes, connection locations, service requirements and implementation schedules. Verizon’s announcement did not provide those project-level details.