As the AI boom spreads further into financial markets, the US Securities and Exchange Commission has eased restrictions on data center owners selling asset-backed securities. The regulator's clarification is in response to a letter from law firm Latham & Watkins. “We agree that fixed income securities or other securities issued by the data center securitization project described in your letter are not asset-backed securities,” the US market regulator said. Asset-backed securities are an investment product formed by pooling financial assets that generate regular cash flows and then selling securities supported by these cash flows to investors. The surge in demand for artificial intelligence computing has prompted companies to seek new financing channels to meet their expansion needs.

As the AI boom spreads further into financial markets, the US Securities and Exchange Commission has eased restrictions on data center owners selling asset-backed securities. The regulator's clarification is in response to a letter from law firm Latham & Watkins. “We agree that fixed income securities or other securities issued by the data center securitization project described in your letter are not asset-backed securities,” the US market regulator said. Asset-backed securities are an investment product formed by pooling financial assets that generate regular cash flows and then selling securities supported by these cash flows to investors. The surge in demand for artificial intelligence computing has prompted companies to seek new financing channels to meet their expansion needs.