The Bank of England is concerned that the increasing lending of financiers to data centers could lead to an AI bubble similar to the infamous dot-com crash of the early 2000s.

According to Bloomberg, the UK’s central bank is looking into the risks associated with this trend, which could escalate if AI companies fail to sustain their high valuations, potentially leading to financial corrections. The investigation follows the BOE’s observation that finances have shifted from hiring staff to investing billions into data centers.

While lending to data centers represents a niche at present, it is expected to significantly grow as demand to power AI increases, with estimates suggesting a requirement of $6.7 trillion by 2030, as stated by McKinsey & Co.

The Bank aims to scrutinize whether the current practices of lending could pose risks to the financial system, cautioned by the findings that numerous banks have already enacted measures that limit crypto-related transactions, mirroring the harsh stance towards AI speculative financing.

Bloomberg reports:

“If the projected scale of debt-financed AI and associated energy infrastructure investment materializes over this decade, financial stability risks are likely to grow.”

This examination could lead to future regulatory restrictions, possibly dampening returns and hindering AI innovation.