Four U.S. Senators, including Elizabeth Warren, urged Treasury Secretary Scott Bessent to launch an investigation into financing packages tied to data center development.

A Thursday letter signed by Warren and Sens. Richard Blumenthal, Chris Van Hollen and Tina Smith called on the Financial Stability Oversight Council to launch a formal investigation into large, complex financing deals tied to data center development, Bloomberg reported.

The senators focused on what they characterized as early signs of stress in the artificial intelligence debt market and voiced concern that American taxpayers would be on the hook for a bailout if an AI bubble were to burst, according to a press release.

The FSOC is a federal interagency body chaired by the treasury secretary. It was created after the 2008 financial crisis to monitor for systemic risks to the economy.

With an estimated $3T investment needed to meet global demand, roughly $870B in debt financing will be required to support digital infrastructure build-out, according to a JLL report. With this increase, developers and Big Tech companies have been scrambling to find new sources of capital.

The letter mentions the financing deal from Blue Owl Capital and Pimco to develop a data center for Meta, Bloomberg reported. The deal was done through a special purpose vehicle, allowing Meta to keep the total debt off its balance sheet.

Warren argued the SPV model “conceals the company’s true financial condition, allowing it to appear healthier and less leveraged than it actually is and enabling it to borrow more than they otherwise could.”

The senators requested that the FSOC work with the Treasury Department “to compel data from financial institutions exposed to AI-related debt and to use its authorities to address any risks identified,” according to the press release.

The $27B, 2,250-acre Hyperion data center will be located in Louisiana. Blue Owl contributed roughly $7B to the joint venture, and Meta contributed the land and assets under construction that are part of the project. Pimco issued $27B in investment-grade bonds backed by the project's assets.

The deal is the largest under an SPV structure so far, but similar deals are being pitched to firms as data center development continues to grow.

The request for a probe comes as concerns heighten around a potential AI bubble.

In December, Warren, Blumenthal and Van Hollen sent another letter to major tech companies and data center operators pressing the companies about concerns that consumers will ultimately end up footing the bill for data center development through high energy costs.