Investing.com -- The European Central Bank is considering a review of bank lending connected to data centers as it looks to assess potential risks from changes in artificial intelligence sentiment and valuations, according to Bloomberg News, citing people familiar with the matter.

Senior officials at the ECB have discussed the idea of a review internally and with banks under their supervision, the people told Bloomberg News.

Global regulators are paying closer attention to banks’ AI-related risks. Concerns center on higher interest rates and growing opposition to data center development, which could create pressure in an area where lending has grown quickly.

The review could include on-site inspections examining how banks account for future cash flows and collateral valuations, and how they prepare for possible defaults, one of the people said.

A second person said any examination would be narrower in scope than the ECB’s leveraged finance review conducted several years ago, which created friction with banks. The exact approach for data centers and broader AI risk has not been finalized, the person added. The people requested anonymity to discuss the details. The ECB declined to comment.

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