Nippon Life plans to invest $12.75 billion in the US — Channel NewsAsia
Japanese insurer Nippon Life Insurance plans to invest 2 trillion yen, or about $12.75 billion, in infrastructure financing in the United States, including data center construction projects. Channel NewsAsia reported this, citing Nikkei Asia.
Project financing
According to Nikkei Asia, Nippon Life intends to channel funds through project financing mechanisms. Under this model, loans are repaid from cash flows generated by the project itself.
The insurer considers US investments in project financing attractive because of an average spread of more than 2% and the opportunity to diversify its investment portfolio. Reuters was unable to immediately independently verify the Nikkei Asia report, and Nippon Life could not be promptly reached for comment.
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Plans in Japan
The company is also considering providing loans for data center projects in Japan by the end of fiscal 2026. According to the publication, by fiscal 2035 Nippon Life aims to double the volume of outstanding loans to 2 trillion yen by adding new projects faster than existing loans are repaid.
The report notes that Japanese companies have long directed capital abroad because of weak domestic growth. At the same time, the return of inflation, higher interest rates, and opportunities in data centers and logistics are increasing the attractiveness of Japanese assets.
