Massive Investment Announcement
Newly elected U.S. President Donald Trump has announced a $20 billion investment to build data centers across the country. The initiative will be funded by Emirati billionaire Hussain Sajwani, founder of DAMAC Properties, as reported by TechCrunch.
During a press conference at Mar-a-Lago on Tuesday (January 7), Trump outlined the project’s first phase, which involves constructing data centers in Arizona, Illinois, Indiana, Louisiana, Michigan, Ohio, Oklahoma, and Texas. These facilities will primarily support artificial intelligence (AI) and cloud technologies.
Hussain Sajwani stated, “We have been planning to expand our investments in the United States for many years. Our goal is to invest $20 billion, or perhaps even more.”
However, no further details about the investment were disclosed during the press conference.
Skepticism Based on Previous Commitments
Doubts linger over whether this investment promise will materialize. In 2017, then-President Trump and Wisconsin Governor Scott Walker announced a $10 billion investment by Taiwan’s Foxconn to build a campus near Milwaukee. Within months, Foxconn scaled back its plans. By the end of 2022, Wisconsin Public Radio reported that Foxconn had created only 1,000 jobs out of the promised 13,000 and spent just $1 billion of the pledged $10 billion by early 2023.
Criticism of the CHIPS Act
Trump has criticized the CHIPS Act, passed during the outgoing Biden administration in 2022, which allocated $39 billion in grants, a 25% tax credit, and billions more in loans to revitalize the American semiconductor industry.
Trump and other Republican leaders have threatened to repeal the CHIPS Act. In an October interview with Joe Rogan, Trump accused Taiwan of “stealing our chip industry” and called for tariffs on imported semiconductors.
Growing Demand for Data Centers
The rapid growth of AI technology has heightened the need for investment in data center infrastructure. Industry leaders have highlighted the importance of such developments, with Microsoft already planning an $80 billion investment in AI data centers.
Sam Altman, CEO of OpenAI, noted that the Trump administration has a significant opportunity to take more effective initiatives than the CHIPS Act. Altman remarked, “Building critical infrastructure in the United States has become so complex that it harms the country.”
Hopes for the New Administration
Tech experts believe the Trump administration could increase investments in AI and data center sectors, positioning the U.S. as a leader in this technological wave. This initiative, if realized, could mark a pivotal step in strengthening the country’s global tech dominance.
