The transition toward renewable energy in the U.S. will remain strong under the incoming administration of President-elect Donald Trump, according to Kevin Cronin, CEO of Mitsubishi UFJ Financial Group’s Americas division. Despite Trump’s anti-renewables rhetoric, Cronin stated that the shift towards renewables will continue as the long-term nature of energy projects transcends political cycles.
“The new administration will be more constructive on fossil fuels, but that doesn’t mean renewables go away,” Cronin told Reuters. He emphasized that energy projects often span multiple election cycles and the bank’s strategy remains focused on long-term goals, unaffected by short-term political shifts.
While MUFG has benefited from President Joe Biden’s Inflation Reduction Act, which has driven investments in infrastructure and renewable energy, Cronin highlighted the growing importance of data centers powered by artificial intelligence (AI). “We’re at the peak of the hype cycle of AI, but it’s real and it’s big,” he said, predicting that data center capacity will double by 2030. As AI demand skyrockets, securing reliable power sources has become a critical factor in data center locations.
Masatoshi Komoriya, Chairman of MUFG’s Americas division, added that the bank is adopting a flexible approach to financing both renewable and fossil fuel energy projects to meet the rising demand from data centers. He noted that varying state regulations on financing energy projects make this flexibility crucial.
MUFG has maintained a dominant position in project finance in the U.S., particularly in renewable energy, where it has led loan volumes for 14 consecutive years. Despite selling its U.S. retail banking arm in 2022, MUFG continues to focus on wholesale banking and markets, with the U.S. business contributing nearly 30% of the group’s profits for the year ending in March 2024.
The U.S. division has also bolstered its mid-market capabilities, particularly in technology, and has recently expanded its team, including hiring around 30 former employees from the collapsed Silicon Valley Bank. “We have a more balanced platform than we did 10 years ago,” Cronin said, reflecting on the bank’s evolving strategy.
