The Bank of England (BOE) is investigating the increasing use of data center loans to finance speculative bets on Artificial Intelligence (AI). Bloomberg reported that this investigation stems from a rise in companies moving funds towards building data centers for AI applications. This follows warnings from the BOE about potential financial risks associated with AI companies exceeding inflated valuations, reminiscent of the dot-com bubble. The probe focuses on how financiers are linking AI investments to these loans. Although still a niche market, data center lending is expected to become crucial as demand for AI infrastructure grows, estimated at $6.7 trillion by 2030, according to McKinsey & Co. However, the BOE is cautious about this strategy and its potential impact on financial stability, prompting an investigation into possible regulatory limits. The investigation’s timing coincides with concerns raised by UK crypto groups over restrictions on stablecoin holdings. While the BOE acknowledges that these measures may be temporary, some banks have already implemented their own limitations on crypto transactions.