The Securitization of Risk: How Loosened Lending Rules Put Data Centres Ahead of Caution The US Securities and Exchange Commission's recent decision to exempt data centre owners from strict lending rules has sent a shiver down the spines of those who remember the 2007 08 financial crisis.
The move, which allows data centres to issue asset backed securities with reduced disclosure and risk regulations, is a telling example of how the sector's rapid growth has outpaced regulatory oversight.
At its core, the SEC's decision is a vote of confidence in the self regulating abilities of the market.