President-elect Donald Trump has revealed that UAE-based property firm Damac Group will invest $20 billion in developing data centers across the United States. Speaking from his Mar-a-Lago resort in Palm Beach, Florida, Trump described the investment as “transformative” and a testament to renewed confidence in the US economy.
Sajwani Highlights Long-Delayed Investment
Hussain Sajwani, founder of Damac Group, joined Trump on stage, noting that the company had been “waiting four years” to make such a significant commitment in the US. According to Sajwani, the decision to move forward was influenced by Trump’s re-election.
Details of the $20 Billion Data Center Plan
Key Locations and Capacity Goals
The investment will target data center developments in eight states, including Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan, and Indiana. While exact locations and timelines remain unspecified, Damac’s press release provides some clarity:
- Capacity: A total of 2GW over four years.
- Phase 1: Two facilities, totaling 500MW capacity, with one in the Sunbelt region and another in the Midwest.
- Approach: Development through joint ventures, strategic land acquisitions near utilities, and acquiring existing data center assets.
Expansion Beyond the US
Damac’s global data center arm, Edgnex, was established in 2021 and already has projects underway in Saudi Arabia, Turkey, Malaysia, and other countries. New facilities in Finland and Italy were recently announced, reflecting the company’s aggressive international growth strategy.
Trump Credits Re-Election for Investment Surge
President Trump attributed Damac’s decision to his 2024 election victory, stating, “This wouldn’t have happened if I hadn’t won.” The announcement follows a similar commitment by SoftBank CEO Masayoshi Son, who pledged $100 billion in US investments focused on AI and related infrastructure.
What Does This Mean for the US Data Center Industry?
Industry Growth and Economic Impact
Damac’s $20 billion investment will significantly bolster the US data center industry, contributing to job creation, technological advancements, and economic development. The focus on renewable energy and strategic partnerships could set a new benchmark for large-scale data center projects.
Meeting Growing Data Demands
As demand for edge computing, cloud services, and AI-powered infrastructure surges, this investment positions Damac as a key player in shaping the future of the global data center landscape.
FAQs About Damac’s US Data Center Investment
1. What is the timeline for these data centers to become operational?
The first phase, which includes two facilities totaling 500MW, is expected to be completed within the next four years.
2. Which states will see the first developments?
Initial developments will be in the Sunbelt and Midwest regions, though specific locations haven’t been disclosed.
3. How will Damac execute such a large-scale investment?
Damac plans to utilize joint ventures, land acquisitions, and existing data center purchases to achieve its capacity goals.
4. Is renewable energy part of this initiative?
While not explicitly stated, data centers typically prioritize energy efficiency and renewable resources, suggesting sustainability will be a key focus.
5. What role does Edgnex play in this investment?
Edgnex, Damac’s data center subsidiary, will oversee the project’s execution and align it with the company’s global expansion strategy.
