Bank of England Probes AI-Fueled Data Center Financing: Market Risks Emerge

The Bank of England is investigating a rising trend in data center financing, driven by the explosive growth of AI investments. This move signals growing concerns about the speculative nature of these bets, which could pose significant risks to financial stability. The investigation follows warnings of potential financial risks associated with the soaring valuations within the AI sector, echoing the dot-com bubble burst of the early 2000s. As demand for AI infrastructure accelerates, the central bank is closely watching how off-balance-sheet bets related to data center financing may impact broader financial stability.