TAIPEI (Taiwan News) — Taiwan's Foxconn and Quanta hope to benefit from billions pledged to US President-elect Donald Trump for new data centers by a United Arab Emirates billionaire.
On Tuesday, Trump said that he had secured at least US$20 billion (NT$658 billion) from the UAE to build data centers in the US, per UDN. Industry insiders are optimistic that his “Made in America bonus" will trigger a massive surge in AI server demand that will benefit Taiwan’s tech firms.
Taiwanese companies hold an estimated 90% of the global AI server manufacturing market, and US companies source 100% of their AI servers from the nation’s manufacturers. With the UAE’s massive investment in data centers, the final orders are expected to flow to Taiwanese companies.
Foxconn, the Taiwanese firm with the largest manufacturing capacity in the US and geographical advantages in the UAE-invested locations, is set to win the largest share of orders. Quanta is also expanding its presence in the US and is positioned to benefit from the projects.
Trump said that his family friend, UAE billionaire and real estate developer Hussain Sajwani, founder of DAMAC Properties, had committed the sum for data centers across the US. Trump also revealed the first phase of this investment plan will include data centers in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan, and Indiana.
Foxconn’s main production bases in the US include Texas, Wisconsin, and Ohio, and it has established an AI server R&D center in San Jose, California. Geographically, Texas and Ohio are anticipated to be the major beneficiaries of the first phase of the AI data center construction funded by the UAE mogul.
Trump said the investment “will support massive new data centers across the Midwest, the Sun Belt area, and also keep America on the cutting edge of technology and artificial intelligence,” per Roll Call.
Trump lauded Sajwani as "one of the most respected business leaders in the Middle East, indeed the world" and claimed that his election win inspired Sajwani's investment decision.
Sajwani confirmed his excitement over Trump's win, “It's been amazing news for me and my family when he was elected in November. We've been waiting four years to increase our investments in the US to a very large amount of money.”