The announcement marks a significant strategic shift for the Emirati billionaire, whose previous high-profile ventures have centred on luxury real estate and hospitality.
In a March 2023 interview with Capacity, Sajwani described the property firm's venture into data centres as a "natural extension of the business," citing projections from Allied Market Research that estimate the global data centre market will reach approximately $517 billion by 2030.
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This investment is one of the largest by a Gulf-based company in the US technology infrastructure sector, and one of the first of the incoming Trump administration.
It highlights the growing importance of digital infrastructure as global demand for data processing and storage soars, fuelled by the rise of cloud computing, artificial intelligence, and other data-intensive technologies.
In a statement, Damac confirmed the plans, emphasising its intent to capitalise on the increasing need for state-of-the-art data centres to support the global digital economy.
Sajwani’s investment is set to span several years and will be focused on building facilities that align with the highest efficiency and sustainability standards.
Traditionally, investments from the Gulf region in the US have been concentrated in sectors such as real estate, energy, and hospitality.
This new focus on technology infrastructure signals a diversification of priorities for Middle Eastern investors.
Analysts view the move as a potential harbinger of further investments in tech-related industries, as regional wealth funds and private investors recognise the economic resilience of the digital sector.
Industry observers note that Damac’s entry into the US data centre market could encourage other Gulf investors to follow suit, accelerating the development of critical infrastructure and fostering closer economic ties between the two regions.
“This isn’t just about building data centres; it’s about positioning for the future,” said one industry expert.
“Investors see the enormous growth potential of digital infrastructure, and Sajwani’s move will likely prompt others to take notice.”
Sajwani’s announcement comes shortly after his public appearance with US President-elect Donald Trump, with whom he has a longstanding relationship.
Damac and the Trump Organisation previously collaborated on high-end real estate developments, including the Trump-branded golf courses in Dubai.
While the investment underscores Damac’s confidence in the US market, the timing has sparked speculation about its geopolitical implications.
Some critics have raised concerns about potential conflicts of interest, given Sajwani’s business ties to the incoming administration. However, both parties have maintained that their dealings remain strictly professional.
Industry implications
The $20 billion commitment highlights the growing need for robust, scalable, and secure digital infrastructure to underpin the global economy.
The US data centre market, already one of the world’s largest, is expected to benefit from Sajwani’s significant capital injection.
Industry insiders suggest that the move could set the stage for increased competition and innovation, particularly as Damac brings its expertise in large-scale project execution to the sector.
However, some caution that such an investment will need to navigate the complexities of regulatory approvals, power sourcing, and local partnerships to achieve success.
Damac has not disclosed specific timelines or locations for the data centres, but Sajwani’s plans are likely to focus on regions with strong demand for high-capacity digital services.
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