On Tuesday, President-elect Donald Trump stated that an Emirati company run by billionaire Hussain Sajwani, a very close business partner of the Trump family, will invest $20 billion in data centers in the United States.
DAMAC Properties' investment in the United Arab Emirates indicates Trump's capacity to secure fresh funding for major undertakings. The statement comes after Japanese billionaire businessman Masayoshi Son revealed he invested $100 billion in the US last month while he was with Trump.
Trump Inspires Sajwani's Commitment
According to Trump, Sajwani made the declaration because "he was greatly motivated by the election and wouldn't do it without the election," he claimed throughout a press conference. The president-elect made it clear that he creates to expedite the environmental regulatory approval method for investments worth at least $1 billion.
When Trump was elected in November, Sajwani briefly attended the press conference and remarked, "It's been outstanding news for me and my family."
The promised investment from Sajwani leads to the current boom in building data centers for the further development of artificial intelligence, the growth of cryptocurrencies, and other ways of an increasingly digital economy that is based on better sources of computer processing power.
Offered the already large investment in new data centers, the $20 billion promise is also a showing that affluent investors close to Trump can benefit from that relationship, even though Trump has tried to present these announcements as a source of renewed power in the American economy.
The financial company Blackstone stated in October that over the next five years, $1 trillion would be invested in data servers in the United States, with an additional $1 trillion going outside. Sajwani's proposal might only account for 2% of the estimated total amount of domestic investment in the industry.
Data centers in the US, which have not yet been involved in his company's EDGNEX data center portfolio, would be obtained by Sajwani. The company's website claims that it now operates data centers in the United Arab Emirates, Turkey, Saudi Arabia, Spain, Thailand, and Indonesia, or seeks to do so.
Trump-DAMAC Business Relations
In keeping with a trend the president-elect's business has utilized in both domestic and global issues, DAMAC also returned millions of dollars in licensing payments to the Trump Foundation.
A Trump-named golf course had been intended for another DAMAC development farther out in the desert. Plans for the golf course on the property were later dismissed by DAMAC, nevertheless. Additionally, after Trump's first presidential victory in 2016, talks for a $2 billion deal between DAMAC and the Trump Organization never came to fulfill. Trump's first election as president, Sajwani claimed, helped increase awareness of his business.
But since then, the Trump Organization has been serving with Dar Global, a Saudi-funded real estate company that is establishing Trump buildings in Saudi Arabia and a golf course bearing the Trump name in Oman.
Although earlier plans for a Trump Tower on Dubai's artificial Palm Jumeirah archipelago crashed during the city's 2008 financial crisis, there are proposals for a Trump Tower in Dubai as well.