Dubai developer DAMAC Properties will invest at least $20 billion "over a very short period of time" in the U.S., primarily in data centers in the middle of the country, President-elect Donald Trump announced Tuesday,

U.S. President-elect Donald Trump on Tuesday announced a $20 billion new investment to build data centers across the United States, a source familiar with the matter told Reuters.

Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

Many companies and brands have begun shifting to more sustainable practices in recent years. Microsoft has long been leading the charge, pledging to be carbon negative by 2030. And it's now added another tactic in the fight for sustainability: building data centers made of wood and other low-carbon materials.

President-elect Trump said Tuesday that billionaire Hussain Sajwani, chairman of Dubai-based developer Damac Properties, is investing at least $20 billion in the U.S. to support new data centers. Why it matters: Sajwani's investment comes as Big Tech's data center spending explodes.

Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025.

Tech giant Microsoft is set to invest approximately $80bn to expand its artificial intelligence (AI)-enabled data centres by fiscal year 2025. These centres will train AI models and deploy AI and cloud-based applications worldwide.