Private credit ·
Bank of England asks lenders about UK data-centre loans made before a tenant is signed; FPC already flagged private-credit AI financing risk
On Nov. 5, Bloomberg reported (via Baxtel and Data Center Dynamics) that the Bank of England asked market participants for details on UK data-centre loans advanced without a signed tenant lease—speculative construction finance. The Bank declined to comment; people familiar with the matter said the questions are to gauge risk, not a ban. The FPC's Sept. 25 record (published Sept. 30) already warned that rising AI-firm indebtedness, opacity and "circular arrangements" can complicate risk assessment and amplify losses if expectations disappoint, and cited a Morgan Stanley estimate that $700 billion of data-centre capex from 2026–28 would be financed by private credit.
Why it matters for deal teams: For AI-infra and data-centre books, tenant commitment status belongs in the underwriting pack next to power, residual-value and guarantor terms—regulators are now asking the same question lenders should already track.
Source: Baxtel (citing Bloomberg, Nov. 5); Bank of England FPC Record, 25 September 2026 ↗ · more ↗