Bank of England flags AI-related debt as macro risk

The Bank of England's Financial Policy Committee said in its quarterly policy record that rising AI-related debt issuance broadens global markets' exposure to operational shocks and valuation swings in frontier AI. Governor Andrew Bailey argued that statutory regulation is not the right place to start on AI.

• FPC named AI-related debt a new transmission channel for market risk
• Gigawatt data center campuses increasingly rely on debt, not cash reserves
• Bailey: stress testing and intervention triggers should precede rigid laws
• Rising rates and commoditized API pricing squeeze data center payback