Google's $40B Texas AI Expansion and Kalshi's Regulatory Challenges

's Google Announces $40 Billion Investment in Texas Data Centers

Alphabet Inc.'s Google has announced a $40 billion investment in Texas data centers, marking its largest state-specific investment in the U.S. The initiative, spanning three facilities in Armstrong and Haskell counties, aims to bolster artificial intelligence infrastructure while creating thousands of jobs and advancing energy efficiency programs according to reports. Concurrently, the company faces a 572 million euro ($665 million) antitrust ruling in Germany for favoring its own shopping platform, and a $30 million settlement over allegations of violating child privacy laws by collecting data from under-13s on YouTube according to court documents.

Texas Data Center Expansion and Workforce Development

Google's investment in Texas includes three new data centers, with one in Armstrong County and two in Haskell County. The project will train over 1,700 electrical apprentices and workers by 2030, doubling Texas's anticipated pipeline of new electricians. The company emphasized its commitment to energy efficiency, including a solar and battery storage facility at one site according to business reports. Texas Governor Greg Abbott highlighted the state's role as an AI innovation hub, citing its affordable energy and business-friendly environment according to state officials.

Elon Musk, CEO of Tesla and SpaceX, remarked on the scale of AI spending, calling it 'mindblowing' in the context of Google's Texas expansion according to Musk's public statement. The project aligns with broader industry trends, as companies like Microsoft and Meta also invest heavily in AI infrastructure according to industry analysis.

Germany Antitrust Ruling

A Berlin court ruled that Google abused its dominant market position by prioritizing its shopping platform in search results, awarding 465 million euros ($540 million) to Idealo and 107 million euros ($124 million) to Producto. The ruling follows prior EU actions against Google for self-preferencing in services like Flights and Hotels. Idealo stated the awarded amount represents only a fraction of the actual damage, vowing continued legal pressure according to court documents.

The broader technology sector has faced increased regulatory scrutiny globally, with AI and digital antitrust issues becoming central to policy discussions. Investors have shown mixed reactions to large corporate settlements, with market volatility often tied to legal developments and earnings guidance according to financial analysis.

Child Privacy Settlement

Google and YouTube agreed to a $30 million class-action settlement for alleged COPPA violations between 2013 and 2020. The lawsuit accused the companies of collecting children's data without parental consent for targeted ads. Eligible claimants, who must submit forms by January 21, 2026, include individuals under 13 who viewed child-directed content during the specified period. Payments will depend on total claims filed according to settlement terms.

Google has faced similar regulatory scrutiny before, including a 2019 $170 million FTC settlement for COPPA violations. The company denied wrongdoing in both cases but chose to settle to avoid prolonged litigation according to FTC records.