MUFG Americas CEO: AI data centres will boost renewable energy demand, even under Trump

Mitsubishi UFJ Financial Group, the largest Japanese banking group, has said that the U.S.'s shift to renewable energy will continue under Donald Trump.

Kevin Cronin, chief executive officer of MUFG Americas, said in an interview that the anti-renewables rhetoric of President-elect Trump has not led to a change in MUFG Americas' strategy.

Cronin stated that the new administration would be more positive on fossil fuels but this does not mean that renewables will disappear.

Cronin said that it takes several years to plan, finance, and build projects, and "we don't try to time our strategies around things outside our control".

Cronin stated that while the bank's growth was boosted by the Inflation Reduction Act of President Joe Biden, the real growth came from the soaring demand for energy from data centres, which power artificial intelligence.

Cronin stated that "we're at peak hype of AI but it is real and big."

Cronin stated that data centre capacity would double by 2030, and that securing reliable electricity is an important part of the location strategy for data centres.

Masatoshi Comoriya, Chairman of the Board at MUFG Americas, who was also interviewed, said that the bank adopted a flexible strategy incorporating fossil fuels and renewables to meet the demand for data centres.

This was especially important, as the rules for financing renewable and nonrenewable projects vary from state to state.

MUFG has been able to achieve the top spot in project financing loan volume in America for 14 years in a row by focusing on renewable energy projects.

MUFG has sold its U.S. Retail Banking arm in 2022, and now focuses exclusively on wholesale banking. However, the U.S. Business accounted for nearly 30% of the total profit in the year up to March 2024.

Komoriya stated that the U.S. operation is strengthening its mid-market offering in areas such as technology and actively increasing staff. It has already hired 30 people from Silicon Valley Bank which collapsed by 2023.

Cronin stated, "I believe we have a platform that is more balanced than it was 10 years ago." (Reporting and editing by Lincoln Feast; Reporting by Anton Bridge)

(source: Reuters)