UAE Firm Commits $20 Billion for AI-Focused Data Centers in the U.S.

A massive investment from the UAE aims to bolster the AI and cloud industries across the United States.

DAMAC Group, a Dubai-based company led by billionaire Hussain Sajwani, has unveiled plans to invest $20 billion in constructing advanced data centers in various U.S. states. The announcement was made during a gathering at Mar-a-Lago, the Florida estate of Donald Trump, who will soon take office as the U.S. president. Sajwani, reportedly a close associate of Trump, expressed confidence in the ambitious venture.

The initiative’s initial phase is set to span multiple states, including Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan, and Indiana. Trump hinted that the investment could exceed its initial projection. “This could easily grow to twice or even more than the original $20 billion commitment,” he stated.

According to Sajwani, the focus will be on developing data centers tailored to meet the needs of AI applications and cloud infrastructure. However, details about the exact implementation of the investment remain unclear. Key questions include whether DAMAC will collaborate with established U.S. developers like Equinix or undertake its own construction projects, each presenting unique challenges.

Alan Howard, a senior analyst at Omdia specializing in data center infrastructure, highlighted potential hurdles for such large-scale developments. “The U.S. already has a crowded field of data center developers, and securing appropriate real estate for sizable projects is becoming increasingly competitive,” he noted. He also pointed out that connecting new facilities to power grids could face significant delays in some of the most in-demand regions. “While the announcement is impressive, it might take years before we see tangible results.”

This isn’t the first high-tech investment linked to Trump since his election victory. Just a month prior, SoftBank CEO Masayoshi Son pledged $100 billion to support U.S. innovation and generate 100,000 jobs over four years.