A prominent real estate figure in the UAE, Hussain Sajwani, is investing billions into the data center sector, aiming to seize opportunities arising from the accelerated growth of artificial intelligence (AI). As the chairman of DAMAC Properties and a close associate of former President Donald Trump, Sajwani is strategically positioning himself to become a leading player in this emerging market.

Investing in Data Centers: A Strategic Shift

Sajwani, ranked second on Forbes’ list of Arab billionaires with a net worth of $15.3 billion, perceives tremendous potential in data storage and processing as the demand for computing capabilities surges. He believes that the pandemic has fundamentally altered the landscape of communication and commerce, pushing him to pivot towards data centers. The sudden rise of AI technologies, exemplified by the launch of OpenAI’s ChatGPT in late 2022, further fueled this belief.

His ambitious plans encompass projects in 13 nations across North America, Europe, Asia, and the Middle East. If realized, these developments will have an impressive total capacity of 6,000 megawatts, requiring an estimated investment of around $66 billion. Recognizing this opportunity was a result of hours spent on video conference platforms during lockdowns, leading him to foresee a growing need for infrastructure that supports remote work and digital interactions.

A Billion-Dollar Vision

Sajwani’s journey from the catering industry to becoming a real estate tycoon was marked by timely decisions and some luck. After transitioning to property development in the 1990s, he capitalized on Dubai’s real estate boom when the market opened to foreign buyers in 2002. The challenges posed by the global financial crisis in 2008 did not deter him; instead, they set the foundation for DAMAC’s impressive growth.

DAMAC has established about 60,000 residential units and has an additional 60,000 in various phases of construction. Interestingly, the establishment of DAMAC Digital in 2021 marked a new chapter in the company’s evolution, highlighting its commitment to diversifying its portfolio into the data sector. The firm has projects nearing completion in Thailand and Saudi Arabia, with expectations to have eight operational sites by the year’s end. Other locations include key markets like Malaysia, Indonesia, the Philippines, Turkey, and Greece.

Resilience Amid Challenges

Despite experiencing geopolitical tensions in the Middle East, which included drone attacks on data infrastructure in the UAE, Sajwani remains hopeful about his investments in data centers. He emphasized the UAE’s resilience and the effective response from the government during recent conflicts, noting that their decision to enter the data center market has proven to be a sound strategy.

Sajwani’s ambition does not stop with just establishing data centers; he aims for DAMAC Digital to surpass DAMAC Properties and become the most significant entity within his business empire. He revealed that five major customers, known as “hyperscalers,” have already partnered with DAMAC for its data center services. While specific client names remain undisclosed, it is acknowledged that they include tech giants in cloud and AI markets.

Looking ahead, Sajwani expressed confidence in the increasing demand for data services, dismissing concerns about a potential oversupply or AI bubble in the years to come. His aspiration is clear: he intends for DAMAC to become a formidable competitor to Equinix, the leading data center supplier worldwide, with ambitions of surpassing them. Sajwani’s vision reflects a bold determination to secure a pivotal role in the future of data processing and storage, shaping not just the region but potentially the global landscape.