Bank of England Probes Data Center Financing as AI Speculation Grows
The Bank of England has initiated an inquiry into the surge of speculative financing for data centers powering artificial intelligence. Regulators are scrutinizing how investors are leveraging these infrastructure projects to capitalize on the AI boom, drawing parallels to pre-dot-com bubble risk dynamics.
McKinsey estimates $6.7 trillion will be required by 2030 to meet computing demand, with energy-intensive data centers absorbing significant capital. The BOE warns of inflated AI valuations potentially triggering market corrections, mirroring early-2000s tech crashes.
Financing structures have shifted markedly - rather than hiring sprees, AI firms now channel billions into physical infrastructure. With few pure-play AI equities available, data center funding has become a primary vehicle for institutional bets on AI's future.