ECB Weighs Targeted Review of Data-Center Loans Over AI Risk

Cointime reports: The European Central Bank is considering a targeted review of eurozone banks’ data-center lending to assess risks from swings in AI market sentiment and valuations, people familiar with the matter said. The review could take the form of on-site inspections focused on how banks assess future cash flows and collateral values and provision for potential defaults. The ECB has not yet settled on a specific approach, and the scope would be narrower than its earlier leveraged-finance review.