Data Center Lending Probed by BOE Amid AI Bubble Fears (1)

The Bank of England is reviewing lending to data centers that are a one way bet on the future of artificial intelligence.

The BOE has already called out the market risk from a surge in the valuations of firms in the industry, warning of the dangers of a sharp correction if “expectations around the impact of AI become less optimistic.”

Now, the central bank’s attention is moving to the links between AI companies and the financial sector, according to people with knowledge of the matter. Although lending is small at the moment, with much of the early construction works funded ...