TOKYO - Mitsubishi Corporation (TYO:8058) has announced the elevation of two of its subsidiaries, Diamond Digital Infrastructure, Inc. (DDI) and Diamond DC Rover, LLC (DDCR), to the status of "specified subsidiary" following their establishment and subsequent investment by the corporation. This change took effect on Thursday, as the company seeks to expand its footprint in the data center market within the United States.
DDI and DDCR were both established on January 16, 2025, in Dover (NYSE:DOV), Delaware, with Hirotake Abe serving as the CEO for both entities. The primary business of these subsidiaries is the development and operation of data centers across the United States. Each company boasts a capital stock of up to $500 million, which is approximately 77 billion yen, based on the exchange rate of 1 USD to 154.07 JPY as of February 5, 2025.
The move to invest in these subsidiaries comes as part of Mitsubishi Corporation (Americas)’s strategy, a wholly-owned subsidiary of Mitsubishi Corporation, which itself holds a 100% share in DDI. DDCR is entirely owned by DDI, establishing a direct investment chain from Mitsubishi Corporation to the operational level of the data centers.
Despite the significant investment and structural changes, Mitsubishi Corporation anticipates minimal impact on its fiscal year 2024 business performance as a result of this development.
The decision to invest in the data center sector aligns with the growing demand for digital infrastructure in the United States, a market that continues to show robust growth potential. However, Mitsubishi Corporation has not disclosed any specific strategies or expected outcomes from these investments, maintaining a conservative stance on the immediate financial implications.
This announcement is based on a press release statement and reflects the company’s ongoing commitment to expanding its operations and investing in sectors that align with global technological advancements and market demands.
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