President-elect Donald Trump said that DAMAC Properties, an Emirati business run by billionaire Hussain Sajwani, will spend a substantial $20 billion on US data centers. This action shows Trump’s ability to draw significant funding for ambitious initiatives. The news comes after Japanese businessman Masayoshi Son had pledged to invest $100 billion in the United States.
Trump said he was confident his election success had influenced Sajwani’s choice. He outlined intentions to use environmental regulatory approvals to speed up investments of at least $1 billion. “When he was elected in November, it’s been amazing news for me and my family,” said Sajwani, who briefly attended the press conference.
Investment in Data Centres:
Sajwani’s $20 billion investment is part of a more significant trend of building data centers for developing cryptocurrencies and artificial intelligence. The digital economy, which requires more computer processing power, depends on these centers. Trump claims these investments would boost the US economy, but they also suggest that investors close to him may profit.
Blackstone predicted in October that over five years, $1 trillion will be spent in US data centers, with an additional trillion going outside. Only 2% of the expected domestic investment in this area may come from Sajwani’s pledge. Although his business, EDGNEX, does not yet have any data centers in the US, it intends to add more in the future.
DAMAC Properties and Trump:
One of the top private developers in the skyscraper-filled city-state of the United Arab Emirates is DAMAC Properties. Before Trump’s presidency, DAMAC built the Trump International Golf Club in the city’s desert outskirts under Sajwani’s direction. DAMAC paid the Trump Organization hefty license fees as part of a trend of similar agreements both locally and abroad.
Another DAMAC project with a golf course bearing Trump’s name was shelved. Furthermore, once Trump won the 2016 election, talks for $2 billion in transactions between DAMAC and the Trump Organization never came to fruition. Sajwani has admitted that Trump’s first term as president raised awareness of his business.
Future Developments:
Since Trump was re-elected in November, Sajwani has visited his Mar-a-Lago home. He posted a picture from a gathering with Trump and Elon Musk on New Year’s Eve. The Trump Organization is now working with Dar Global, a Saudi-backed real estate company creating several projects in Saudi Arabia and a golf course bearing the Trump name in Oman. Additionally, a Trump Tower in Dubai is being planned. However, amid the 2008 financial crisis, plans for a skyscraper of like type on Dubai’s Palm Jumeirah island were put on hold.
This investment demonstrates Trump’s capacity to draw significant financial commitments and the potential benefits for investors with connections to him. The environment of international commercial connections will likely change as these advancements occur.
