Japanese Life Insurance Industry Expands AI Infrastructure Investment... Nippon Life to Invest 17 Trillion Won

On September 20, Japan’s Nihon Keizai Shimbun reported that the Japanese life insurance industry is expanding its investments in artificial intelligence (AI) infrastructure.

According to the report, Nippon Life Insurance (Nissay), Japan’s largest life insurance company, has decided to invest 2 trillion yen (approximately KRW 17.7 trillion) in projects such as building AI data centers. Nissay provided a loan of 1 trillion yen (about KRW 8.8 trillion) for the construction of an Amazon data center, and plans to increase its total loans to 2 trillion yen by 2035.

While Nissay is considering investments within Japan, the report indicated that the primary loan destinations are in the United States, which is home to many of the world’s largest data centers. The media outlet explained that the investment is attractive, as it offers an average margin of 2%, and provides the additional benefit of diversifying the management of its capital.

Japan’s financial sector has also been increasing its investments in AI infrastructure. Mitsubishi UFJ Bank, one of the country’s top three banks, has decided to participate in an AI infrastructure investment fund sized at 4 trillion yen (around KRW 35.4 trillion). Similarly, Sumitomo Mitsui Trust Bank plans to create a fund with 500 billion yen (about KRW 4.4 trillion) in assets under management by 2030 to attract investors from the Middle East and North America.

This content was produced with the assistance of AI translation services.