(Updates to mention that the FSA declined to comment)

Japan's Financial Services Agency has increased scrutiny on AI data center financing by the country's top banks and life insurers amid growing exposure among major financial institutions to the expanding sector, Bloomberg News reported Sept. 25, citing a senior FSA official.

As part of the scrutiny, the regulator will examine lenders' risk-management framework, mostly concerning data center projects in the United States, the report said.

Japan's Financial Services Agency declined to comment to MT Newswires on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)