According to HashNews, the Bank of England is investigating a surge in lending to data centers, seen as speculative bets on the future of AI. The central bank is studying market risks and has warned that a potential AI sector correction could resemble the 2000 dot-com bubble if high valuations are not met. It is also analyzing the relationship between AI firms and financiers seeking to invest in the AI market. Although data center lending remains a niche, it is expected to grow significantly, with an estimated $6.7 trillion needed by 2030 to power AI, as noted by McKinsey in April. The investigation follows the Bank of England's observation of a shift from hiring to heavy investment in data center construction. The move may signal future regulatory constraints on the strategy, potentially limiting returns and slowing AI innovation. Meanwhile, the Bank's proposal to cap individual stablecoin holdings has faced strong opposition from UK crypto groups, who argue it is overly restrictive and impractical. The Bank views the emerging lending practice as a potential risk to financial stability, noting that debt-funded AI and energy infrastructure investments could increase financial risks in the coming decades.
Bank of England Investigates Data Center Lending Surge for AI Investments
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