Alphabet shares rise 3.2 per cent after US midterm elections
Democratic wins in the US midterm elections have led to expectations of tighter data centre regulations, potentially benefiting established technology firms.
Shares of Alphabet, the parent company of Google, rose by 3.2 per cent to close at $288.93 during Wednesday's trading session, according to The Economic Times.
The stock had previously surged as much as 5.9 per cent during the day. The rally followed a Democratic sweep in the US midterm elections.
The election results have created expectations for stricter oversight of new data centre projects. This includes possible moratoriums due to concerns regarding environmental impact, water availability, and electricity consumption.
Such regulatory shifts could limit new capacity additions, which may benefit existing companies like Alphabet that possess extensive data centre networks. This comes as the company plans to spend between $195 billion and $205 billion on capital expenditure in 2026, up from approximately $90 billion last year.
Alphabet is increasing investments to expand computing infrastructure for artificial intelligence and cloud services. The company has raised €6 billion through a seven-tranche euro bond offering, bringing its total euro-denominated bond sales this year to €15 billion.
While Google Cloud revenue more than doubled year-on-year to approximately $30.7 billion in the third quarter, investors remain concerned about negative free cash flow and high capital expenditure.
