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The demand for renewable energy in the United States is set to continue growing despite the incoming administration of President-elect Donald Trump, according to Kevin Cronin, CEO of MUFG Americas, the U.S. arm of Japan's Mitsubishi UFJ Financial Group.

Cronin emphasized that Trump’s pro-fossil fuel stance would not derail the momentum of renewable energy projects already in development.

“The new administration will be more constructive on fossil fuels, but that doesn’t mean renewables go away,” Cronin told Reuters. He explained that renewable energy projects typically span multiple election cycles, making them less susceptible to short-term political shifts.

MUFG, a leader in project finance loan volume in the U.S. for 14 consecutive years, has benefitted significantly from renewable energy initiatives bolstered by President Joe Biden’s Inflation Reduction Act. However, Cronin noted that the rising energy demands of artificial intelligence (AI) data centers represent a major growth area.

“We’re at the peak of the hype cycle of AI, but it’s real and it’s big,” Cronin said, predicting that data center capacity will double by 2030. He stressed that securing reliable power sources is becoming a strategic priority for data center operators, influencing their location decisions.

Masatoshi Komoriya, chairman of MUFG’s Americas subsidiary, highlighted the bank’s flexible approach, which incorporates both renewables and fossil fuels to meet diverse energy needs across states with varying regulations.

This adaptability has allowed MUFG to maintain its leadership in project financing while supporting the evolving energy requirements of AI infrastructure.

MUFG has shifted its U.S. focus entirely to wholesale banking and markets after selling its retail banking operations in 2022. The U.S. business, which accounted for nearly 30% of the group’s profits in the year ending March 2024, has been strengthening its mid-market offerings, particularly in technology.

Komoriya noted that MUFG has actively expanded its team, hiring around 30 personnel from the collapsed Silicon Valley Bank in 2023 to bolster its expertise in the tech sector.

Cronin expressed confidence in MUFG’s positioning, stating, “I think we have a more balanced platform than we did 10 years ago.” He reiterated the bank’s long-term commitment to renewable energy and data center financing as pivotal components of its U.S. growth strategy.

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