The European Central Bank (ECB) is exploring a review of bank lending to data centers, focusing on potential risks tied to artificial intelligence (AI). Senior officials at the ECB have discussed the idea internally and with lenders they oversee, according to people familiar with the matter.
Global regulators are stepping up scrutiny of banks' exposure to AI risks, particularly concerns that higher interest rates and growing opposition to data center development could strain this rapidly expanding lending sector.
One source mentioned that the review aims to assess how fluctuations in AI sentiment and valuations might impact the financial stability of data center investments. The ECB's move reflects broader concerns about the sector's vulnerability to economic shifts and regulatory challenges.