The Bank of England investigates lending strategies that leverage data to boost AI betting.

2025-10-25 02:53:46

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The Bank of England (BoE) is investigating the rise of financial institutions lending to data centers as a way to speculate on the future of AI, according to Bloomberg. The BoE warns of risks if AI companies do not meet valuation expectations, which could lead to a correction similar to the dot-com bubble of 2000.

According to McKinsey & Co, the AI sector needs about 6.7 trillion USD in investment for data centers by 2030. The BoE has launched an investigation after noticing a shift in funding from hiring personnel to building data infrastructure.

The agency is concerned that large-scale lending could threaten financial stability, while also being criticized for proposing to limit stablecoin holdings to £10,000–£20,000. The BoE warns that if the trend of AI investment through borrowing continues, financial risks will significantly increase in the next decade.

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