US development-finance agency targets AI, minerals in expansion

A US development-finance agency that’s on track for a tripling in funding aims to invest in data centers for artificial intelligence, as well as critical minerals and energy, according to a top official.

The US International Development Finance Corp. will focus on projects in Latin America, as well as wealthy nations like Canada and Australia that had been outside its remit, Conor Coleman, the DFC’s head of investments and chief of staff, said in an interview.

“You’re going to see us moving at a much faster pace heading into the new year,” Coleman said.

Created under the first Trump administration, the DFC has emerged in his second term as a key tool in his push to harness US economic and business interests in foreign policy. The DFC’s financing capacity will be increased to $205 billion from $60 billion and the roster of countries where it can operate will be expanded under a bill Trump is scheduled to sign later Thursday.

Trump named Ben Black, the son of billionaire Leon Black, to head the DFC.

“America’s foreign investments must deliver for the American people and bolster our position as the global leader of peace and prosperity,” Black said at an event Wednesday.

Coleman said AI data centers are of “massive importance” to the agency, citing a “digital Silk Road” to combat foreign adversaries.

He said a key priority for the DFC’s expanded efforts will be critical minerals, especially in mid-stream processing projects in countries like Canada and Australia.

“That is where I think immediately you’re going to start seeing us play when it comes to high-income country investments,” Coleman said. The DFC announced a $5 billion critical minerals consortium in October.

“We’re using our debt and equity tools to invest in companies overall in the extraction and the processing phase, with the goal of making sure we have the capacity for US and US-aligned parties on the processing side, and then on the extraction side, actually having controls on where the offtake is going for our investments,” he said.

Critical minerals, energy and infrastructure also will be key sectors as the DFC begins work in Ukraine next year, according to Coleman.

The Washington-based agency intends to open a New York City office early next year as it seeks to recruit more Wall Street talent and broadening its financing options, he said.

“The idea of taking more risk, being more flexible capital providers, instead of just traditional, senior, secured project finance lenders, and playing in the mezzanine or the structured equity or the common equity, is really going to open us up to mobilize more private capital,” Coleman said.

“We should be seeing two, three, four times of private sector dollars coming into our investments alongside of us,” he said.

(By Daniel Flatley and Joe Deaux)