Verizon (VZ) Stock: Builds Fiber Network With AWS for AI Data Centers

TLDR

• Verizon and Amazon Web Services signed agreement to build fiber network connecting AWS data centers
• New infrastructure will support AI application performance with low-latency fiber pathways
• Deal expands existing Verizon-AWS partnership that includes cloud services and edge computing
• Major cloud providers reported strong AI-driven revenue growth last week
• Financial terms of the fiber network agreement were not disclosed

Verizon announced Monday it will construct high-capacity fiber routes connecting Amazon Web Services data centers. The infrastructure deal focuses on supporting artificial intelligence applications.

The telecom company will build long-haul fiber pathways under the Verizon AI Connect agreement. These connections aim to improve network performance for AI workloads running on AWS cloud infrastructure.

Verizon Communications Inc., VZ

Neither company disclosed financial terms of the deal. The fiber network will provide low-latency connections designed for generative AI data processing requirements.

Scott Lawrence, SVP and Chief Product Officer at Verizon Business, said the deal shows commitment to meeting AI workload demands. The network infrastructure will support businesses building future applications.

Prasad Kalyanaraman, vice president of AWS Infrastructure Services, explained that generative AI needs both secure cloud infrastructure and flexible networking. The Verizon collaboration will enable high-performance connections for customers building AI applications at scale.

Building on Existing Partnership

This agreement strengthens the relationship between Verizon and AWS. Verizon previously selected AWS as a preferred cloud provider for digital transformation projects.

The companies have already worked together on private mobile edge computing solutions. These offerings deliver secure connectivity for enterprise customers.

Previous collaborations have served multiple industries. Manufacturing, healthcare, retail, and entertainment sectors have benefited from the combined network and cloud services.

Cloud Providers See AI Revenue Surge

Major cloud providers reported accelerating revenue growth last week. Microsoft, Amazon, and Alphabet all cited demand for generative AI as a key driver.

These companies plan to increase capital spending next year. The investments will support growing infrastructure needs for AI workloads.

Telecom operators are becoming essential players in the AI-driven economy. Cloud providers continue experiencing strong growth from AI applications.

The new fiber segments represent a commitment to network buildout. The infrastructure will help the AI ecosystem handle exponential data growth from generative AI.

Network Infrastructure for AI Scale

The Verizon AI Connect solution will provide AWS with resilient network paths. This infrastructure enhances performance and reliability for AI workloads.

The fiber pathways will enable AWS to continue delivering secure and reliable cloud services. Customers building advanced AI applications will benefit from the improved network connections.

Verizon’s network infrastructure will underpin the new connections. The deal was announced November 3, 2025.

The partnership addresses surging data and network demands from generative AI. Fast, secure, and resilient connections are required to process massive AI workloads.

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