Industry News & Insights

09 Jan 2025

DAMAC Developer to Invest $20 Billion in Trump's Data Center Initiative

DAMAC Developer to Invest $20 Billion in Trump's Data Center Initiative

Who is the Developer Behind Trump’s $20 Billion Data Center Initiative?

Hussain Sajwani, the founder and chairman of Dubai-based DAMAC Properties, is the developer behind Trump’s ambitious $20 billion data center pledge. Sajwani, known for building the first Trump-branded golf course in the Middle East, has been a longtime partner of the Trump Organization, generating millions in revenue through their collaborations.

Trump and Sajwani’s Partnership

On Tuesday, President-elect Donald J. Trump invited Sajwani to the stage at Mar-a-Lago, where the Dubai developer announced plans to invest heavily in U.S. data centers. Sajwani’s DAMAC Properties has worked with the Trump Organization for over a decade, cementing ties through high-profile projects, including luxury real estate developments and golf courses.

“For the last four years, we’ve been waiting for this moment,” Sajwani said, praising Trump’s business-friendly policies. Critics, however, argue that this relationship underscores potential conflicts of interest as Trump prepares for a second presidential term while retaining his business empire.

What Does DAMAC Do?

DAMAC Properties is a part of the DAMAC Group, one of Dubai’s leading real estate developers. The company is renowned for its extravagant projects, including collaborations with luxury brands like Versace and Fendi.

Founded in 2002, DAMAC quickly became a key player in Dubai’s luxury property market, developing high-end towers and villas. By 2023, DAMAC had delivered 47,000 homes, with 33,000 more under development. In addition to its real estate ventures, DAMAC recently announced plans for a $1 billion condo project in Miami and is actively exploring more opportunities in the U.S. market.

Despite its successes, DAMAC has faced legal challenges, including disputes over delayed property deliveries and investment-related lawsuits in Egypt, which were eventually settled.

DAMAC and Trump: A History

In 2013, Sajwani partnered with the Trump family to create the first Trump-branded golf course in the Middle East. DAMAC paid Trump millions for licensing and management fees, and the partnership continued during Trump’s first term as president.

The Trump International Golf Club in Dubai opened in 2017, becoming a central feature of DAMAC Hills, a luxury community. A second golf course project faced delays and scrutiny when a Chinese government-controlled company was hired to construct part of it.

Sajwani has maintained close ties with the Trump family, even attending the wedding of Trump’s daughter and frequenting events at Mar-a-Lago. He recently shared a New Year’s Eve photo with Trump and Elon Musk, further illustrating their connection.

Why is DAMAC Investing in U.S. Data Centers?

Sajwani’s investment in data centers marks a strategic expansion into North America. In 2021, DAMAC established Edgnex Data Centres, a subsidiary focused on meeting the growing global demand for cloud computing and artificial intelligence infrastructure.

Edgnex operates in 10 countries, including Saudi Arabia, and aims to make significant inroads into the U.S. market with an initial $20 billion investment. The plan includes building data centers across eight states, such as Texas and Indiana, with ambitions to rival projects by tech giants like Microsoft and Amazon.

Trump pledged to expedite federal environmental reviews for DAMAC and any other companies investing $1 billion or more in the U.S., potentially giving Sajwani a competitive edge in this lucrative sector.


 

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