Trump's Promise to Invest $20 Billion in Data Centers Across the Midwest and Sun Belt Regions May Come at a Cost

Trumps Promise To Invest 20 Billion In Data Centers Across The Midwest And Sun Belt Regions May Come At A Cost
  • Trump announced a $20 billion partnership with Emirati billionaire Hussain Sajwani to build hyperscale data centers in the U.S. »
  • The data centers will first target the Midwest and Sun Belt states, with the possibility of local economic growth and more jobs »
  • Hyperscale data centers come with a hefty environmental cost — requiring immense energy resources »

President-elect Donald Trump announced last Tuesday that the U.S. will be investing $20 billion in new data centers for artificial intelligence and cloud technologies.

At the press conference at his Mar-a-Lago home in Palm Beach, Trump stated that the investment intends to “keep America on the cutting edge of technology and artificial intelligence” and will be available “over a very short period of time.”

Surprisingly, the money isn’t coming from government funds — instead, it’s coming from Emirati billionaire Hussain Sajwani.

Sajwani and Trump have a long history: More than a decade ago, Sajwani built the very first Trump-branded golf course in the Middle East. A longtime business partner of Trump’s, Sajwani is now eyeing major investments in the U.S.

As the founder of DAMAC Properties, a leading real estate company known for luxury towers and hotels across the Middle East and Europe, Sajwani seems to be setting his sights on the States’ tech industry, capitalizing on the booming AI and cloud computing market.

Prospective sites in the initial phase of construction include Arizona, Illinois, Indiana, Louisiana, Michigan, Ohio, Oklahoma, and Texas.

Could $20B in data centers revitalize local economies?

The announcement of new data centers in the Midwest is promising, especially since most of America’s data centers are currently concentrated on the eastern and western coasts.

Generally, they are around major cities — San Francisco, New York City — so seeing data centers smack in the middle of the U.S. is pretty uncommon.

But that’s not to say it’s not needed. The construction alone could create thousands of jobs.

Joe Morgan, who founded and operated Joe’s Datacenter for 14 years and is currently the Chief Infrastructure Officer at Patmos Hosting, said this plan is a great opportunity “for skilled tech workers who have been displaced by layoffs in SaaS and large tech firms.”

In 2023, more than 191,000 tech workers were laid off in the U.S., with another 100,000 facing job cuts in 2024. Major companies like Google, Microsoft, and Amazon were among those making large-scale layoffs — and in 2025, Microsoft and Amazon continue to reduce their workforce.

Graph: Number of tech employees laid off worldwide from 2020 to 2023, by company
Amazon, Meta, Google, and Microsoft are some of the tech giants that have implemented large-scale layoffs. (Source: Statista)

Like many small businesses, tech agencies are struggling to stay afloat. And it’s not just about jobs; it’s about being David in a world of Goliaths. Morgan warns that empowering large hyperscale data centers only makes it harder for a truly free and open internet to exist.

“The current focus on catering exclusively to a few hyperscale operators risks an unhealthy consolidation of the internet,” said Morgan.

So, while this could bring more jobs to the Midwest and Sun Belt regions, what’s the long-term picture? Are we staring down the barrel of an oligopoly-loaded gun?

Maybe not, says Morgan. As an industry veteran, he believes the key solution lies in directing U.S. investments toward carrier-neutral and customer-neutral data centers.

The hidden costs of hyperscale data centers

Hyperscale data centers for AI and cloud technologies demand immense power capacities, often exceeding 100 megawatts, which is the equivalent of powering more than 400,000 electric vehicles for an entire year.

This would just add more strain to an already overloaded power grid and drive energy use even higher. Right now, American data centers already use 4.4% of the country’s total electricity.

And if AI doesn’t live up to its revenue potential, “we risk creating an overinflated tech bubble,” Morgan warned.

It’s a good point. The tech world is clearly pushing to embrace AI to its fullest potential, but is there enough demand? Enough information?

Elon Musk said in an X interview recently that “the cumulative sum of human knowledge has been exhausted in AI training.”

It may be just the beginning, but if AI doesn’t deliver as expected, the infrastructure investment could fall short.

Trump seems to remain optimistic about the investment, though. At the press conference, he guaranteed any companies that commit at least $1 billion in investment would benefit from expedited reviews, bypassing what he described as the “quagmire of environmental and other various regulations.”

He is referring to a common frustration among businesses: delays caused by regulatory hurdles. Trump pointed to examples of plants in Louisiana that had been approved but were later stalled due to environmental restrictions.

Plant at the Mississippi river bank in Louisiana
Plant at the Mississippi riverbank in Louisiana. (Source: Shutterstock)

“Much of it is just to stop progress,” Trump said at the press conference. “So, we’re going to be helping [Sajwani] and anyone else who wants to come to the United States and invest their money, so you don’t get tied up for the rest of your life.”

That’s a helpful sentiment to venture capitalists, but perhaps not to the communities where these data centers would be built.

Regulations exist for a reason: to protect ecosystems and communities from the fallout of industrial activities. Natural gas terminals in Louisiana, for example, have come under fire for spewing toxic emissions.

We’re reaching a point where businesses and governments must find a balance between fostering growth and practicing sustainability.

And luckily, the U.S. has a pretty decent example to follow.

The European Union’s goal is to become the world’s first climate-neutral continent by 2050. While the U.S. is focused on accelerating growth, the EU proves that both innovation and environmental responsibility can go hand in hand.

So while we are once again facing the balance between a healthy economy and a healthy planet, the takeaway is quite simple: There is no economy on a dead planet.