Nippon Life Insurance Co. anticipates an 11% surge in overseas project finance lending this year, reaching a record high. This increase is primarily driven by escalating demand for funding AI data centres, particularly in the United States. The insurer's outstanding project loans are projected to hit ¥1 trillion (£5.27 billion) for the fiscal year, marking a significant rise.
Contributing factors include the growing need for hyperscale data centres in suburban areas and the appeal of data centre financing to Japanese lenders and insurers. These projects, often funded through substantial project financings, present attractive credit opportunities. The company's strategic investments in technology align with its exploration of AI and big data, complementing its venture into fintech and related sectors.
