Bank of England Probes AI Data Center Lending Amid Financial Stability Concerns
The Bank of England has initiated a review of lending practices tied to AI data centers, flagging potential systemic risks as financiers pour capital into infrastructure bets. With $6.7 trillion in estimated funding needed by 2030 to meet AI compute demands, the central bank warns of dot-com bubble parallels.
Financial institutions are pivoting from talent acquisition to physical infrastructure investments, creating concentrated exposure. This shift comes as traditional AI investment vehicles—from equities to crypto tokenization—remain underdeveloped for institutional-scale participation.
Market observers note the irony: while AI promises efficiency gains, its capital demands may be creating new inefficiencies in credit allocation. The BOE's scrutiny reflects growing unease about valuation disconnects in AI-adjacent markets.
