Japan's Nippon Life plans $13 billion for data center financing in US, Nikkei Asia reports

Sept 20 : Japan's Nippon Life Insurance plans to invest 2 trillion yen ($12.75 billion) in infrastructure financing, including the construction of data centers in the United States, Nikkei Asia reported on Sunday.

• Nippon Life intends to use the capital through project finance arrangements, under which loans are repaid using cash flows generated by the underlying projects, the report said.

• The insurer sees US project-finance investments as offering attractive spreads of more than 2 per cent on average, while helping to diversify its investment portfolio, the report added.

• Reuters could not immediately verify the report. Nippon Life Insurance could not be immediately reached for comment.

CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less • Japan is among the hottest markets for global private capital, experiencing a wave of private equity-led M&A and real estate deals in recent years. • While Japanese firms have long exported capital abroad in the face of sluggish domestic growth, the return of inflation has prompted a surge in growth investments at home, while higher interest rates and growth opportunities in areas such as data centers and logistics are making Japanese assets more attractive. • Nippon Life is also weighing loans for data center projects in Japan by the end of fiscal 2026 and aims to double its outstanding balance to 2 trillion yen by fiscal 2035 by adding new projects at a pace exceeding repayments, the report said. ($1 = 156.8600 yen)

• Japan is among the hottest markets for global private capital, experiencing a wave of private equity-led M&A and real estate deals in recent years.

• While Japanese firms have long exported capital abroad in the face of sluggish domestic growth, the return of inflation has prompted a surge in growth investments at home, while higher interest rates and growth opportunities in areas such as data centers and logistics are making Japanese assets more attractive.

• Nippon Life is also weighing loans for data center projects in Japan by the end of fiscal 2026 and aims to double its outstanding balance to 2 trillion yen by fiscal 2035 by adding new projects at a pace exceeding repayments, the report said.

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Get our pick of top stories and thought-provoking articles in your inbox

Stay updated with notifications for breaking news and our best stories

Join our channel for the top reads for the day on your preferred chat app