It is reported that Deutsche Bank is exploring hedging its data center risk exposure.

According to the Financial Times, citing unnamed sources, Deutsche Bank executives have discussed how to manage the bank's risk exposure in the data center industry. The bank is considering various options, including shorting a basket of artificial intelligence-related stocks to hedge against downside risks. Deutsche Bank has lent billions of dollars to this industry, helping to meet the demands for AI and cloud computing. Additionally, the bank is also considering a transaction called synthetic risk transfer, using derivatives to purchase debt default protection.