According to Bloomberg, citing sources, the European Central Bank (ECB) is contemplating a review of loans connected to data centers.
Based on these sources, high-ranking ECB officials have internally suggested the idea and are now in discussions about it with the banks they oversee.
One source mentioned that on-site inspections might be arranged to assess the accounting of future cash flows, the valuation of collateral, and the measures established for possible defaults.
Another source highlighted that, no matter the format, any reviews conducted would not be as thorough as the audit of high-risk loans that previously strained the regulator’s relationship with banks. The particular strategy for data centers and wider AI-related risks remains undecided, the source mentioned.
The ECB chose not to provide a comment when reached out to by the news agency.
In a letter to European legislators, ECB President Christine Lagarde highlighted that the organization is “carefully observing the funding of AI infrastructure and its possible effects on financial stability.” She did not refer to any scheduled inspections.
source: bloomberg.com
