[The European Central Bank is reported to be considering reviewing data center-related bank loans and AI risk concerns are rising] On November 6, the euro zone’s top banking regulator is considering reviewing data center-related loans to assess the risks that may arise from fluctuations in market sentiment and valuations of artificial intelligence. Senior ECB officials have floated the idea internally and in communications with lenders they oversee, people familiar with the matter said. Global regulators are stepping up scrutiny of AI-related risks in banks amid worries that rising interest rates and growing opposition to data center development could put pressure on this rapidly expanding area of ​​lending. One of the people said the review could take the form of on-site inspections to gain insight into how banks account for future cash flows, collateral valuations and other factors, and how they respond to possible defaults. A second person familiar with the matter emphasized that the scope of any investigation would not be as broad as the review launched by the European Central Bank several years ago into leveraged finance. That review sparked dissatisfaction in the banking industry. Specific approaches to data centers and broader AI risks have yet to be determined, the person said.