Alphabet (GOOGL) Fell 3.21% Amid Stalled Data Center Financing and EU Regulatory Scrutiny

Alphabet Inc. Class A (GOOGL) fell 3.213% in pre-market trading on December 18, 2025, as reports emerged about stalled financing for a $10 billion data center project in Michigan. The development weighed heavily on the stock, joining Oracle, Nvidia, and Broadcom in a broader sell-off of AI-related equities. The funding setback, coupled with regulatory scrutiny in the EU, amplified investor concerns about Alphabet’s near-term execution risks.

The European Commission has intensified its probe into Google’s compliance with the Digital Markets Act, raising the possibility of fines up to 10% of global revenue. Separately, regulators are investigating whether Google improperly used third-party content to train its AI models. These regulatory headwinds, combined with wider market skepticism about AI infrastructure costs, contributed to the sharp decline. Alphabet’s stock, however, remains near its 52-week high, reflecting its strong year-to-date performance amid a volatile tech sector.

Investors also reacted to broader industry trends, including Oracle’s recent cloud sales miss, which highlighted uncertainties around AI spending returns. While Alphabet’s Google Cloud division has shown resilience, the sell-off underscores growing caution about the sector’s valuations. Analysts note that the drop could present a buying opportunity for long-term investors, though near-term risks from regulatory and funding challenges remain elevated.

Looking ahead, investors will be closely watching Alphabet’s next earnings report and its ability to secure funding for its Michigan data center project. A successful resolution could help the stock regain momentum in the coming months. However, the company faces ongoing scrutiny from regulators, which could weigh on its shares if not addressed effectively.

Overall, while Alphabet has demonstrated robust performance in the tech sector, the current challenges may test its ability to maintain investor confidence. The coming months will be critical in determining whether the stock can recover its previous momentum or if the regulatory and financial hurdles will persist as headwinds.