
A United Arab Emirates investment firm has committed to a substantial $20 billion investment aimed at establishing new data centers focused on artificial intelligence throughout the United States. This announcement was made by Hussain Sajwani, the CEO and founder of DAMAC Properties, during an event at President-elect Donald Trump’s Mar-a-Lago residence. Sajwani is known to have a close relationship with Trump.
The initial phase of this investment will see developments in several states, including Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan, and Indiana, with potential for further expansion. Trump noted the possibility of increasing the investment even more, suggesting that the figure could potentially double.
Sajwani expressed that the investment is strategically tailored to meet the demands of the AI and cloud computing sectors, essentially targeting the needs of major cloud service providers.
However, the specifics surrounding the timeline and execution of this $20 billion investment remain unclear. Questions arise about whether DAMAC intends to collaborate with existing U.S. data center developers, such as Equinix and JLL, which typically seek capital for their ventures, or if they plan to initiate their own data center construction. Each scenario comes with its own set of complexities.
According to industry insights from Alan Howard, a senior analyst for data center infrastructure, developing data centers is a lengthy process that can take up to five years from conception to the commissioning of the first building. He also highlighted that competition in the U.S. data center market is fierce, particularly regarding securing suitable locations for larger projects. In many areas, demand for power capacity connections can lead to significant delays.
This venture marks another significant technological initiative following Trump’s election victory. In December, Softbank’s CEO, Masayoshi Son, announced intentions to invest $100 billion in the U.S., aimed at creating 100,000 jobs over the subsequent four years.
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