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.

• 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.