Gov. Kevin Stitt and other officials expressed optimism about the potential economic impact a major investment in data centers across the Sunbelt will have on the state after President-elect Donald Trump and one of his business associates announced a $20 billion plan.
EDGNEX Data Centres, a DAMAC-owned company based in the United Arab Emirates, announced billions of dollars in investment to enter the U.S. market with a targeted 2000MW capacity over the next four years with potential of doubling funding to meet future demands, according to a news release.
“This is an extremely exciting moment for us,” Emirati billionaire Hussain Sajwani, chairman of Dubai developer DAMAC, said in a statement. “Our foray into the U.S. market in data centers represents a significant milestone in our journey to build a global digital infrastructure platform that will empower businesses today and in the future. Leveraging our expertise in real estate and data centers, we aim to deliver best-in-class infrastructure that supports the next wave of cloud and AI growth, helping further to position the U.S. in the technology and global data ecosystem.”
Gov. Stitt expressed excitement in a post on X, formally known as Twitter:
“With President Trump’s recent announcement and support, Oklahoma has never been better positioned to become a major player in high tech data centers and AI innovation,” Stitt said in the post. “Oklahoma is winning.”
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EDGNEX stated in the news release that in the first phase of development it plans to build up capacity through joint ventures with partners, acquire land banks, existing data centers and platforms, and meet current market demands.
Sajwani, who owns the only Middle Eastern Trump-branded golf course in Dubai, celebrated New Year’s with Trump shortly before the announcement was made.
“We’re planning to invest $20 billion and even more than that, if the opportunity in the market allows us,” Sajwani said at that time.
The billion-dollar investment will also add data centers in Texas, Arizona, Ohio, Illinois, Louisiana, Michigan and Indiana.
In his post, Stitt directed followers to a News9 article on the data centers, which stated that the governor’s recent trips to Dubai and throughout Asia aimed to develop investments such as these:
“I’ve traveled to Dubai and throughout Asia to bring investment like this to Oklahoma,” he said. “This is phenomenal news.”
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However, officials have not released any details concerning specific locations or announced companies that would receive incentives from the investment to create or expand operations in the state. Trump did not specify what kinds of operations or businesses the data centers would support.
Evan Brown, the Oklahoma Chamber of Commerce executive director of economic development, growth and expansion, released a statement.
“We are excited to see Oklahoma on the national and international stage following President Trump’s announcement,” Brown said. “If you look at Google in Pryor and Polaris in Muskogee, we’ve already had great success with data centers. We are also the most business-friendly state in the country, with some of the cheapest energy costs in the nation. Oklahoma is uniquely positioned to be the perfect partner for this type of investment.”
Oklahoma an attractive location for previous data hubs
Many data hubs have been traditionally located near the state’s major metros, Oklahoma City, Tulsa and other areas. State incentives, such as Computer Services Equipment sales taxes, low property taxes and low industrial electricity rates make Oklahoma an attractive place for businesses. There are dozens of enterprise data centers and 16 “co-location” facilities, according to the Oklahoma Chamber of Commerce.
Google has invested $4.4 billion in their data center in Mayes County since 2007, where the company says it found “the right combination of energy infrastructure, developable land and available workforce.” Over 800 workers have been employed since its creation.
Polaris, a powersport automotive manufacturer, created its first U.S. data center in Muskogee in 2023 as part of its “Project Bitfrost” using hydrogen and air-cooled technology to power servers. Their operations support Bitcoin network security and power grid stability.
Other companies with data centers in the state include AT&T, Avaya, Cox Communications, Hitachi, IBM, Verizon and more.
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However, data centers have contributed to rising energy use and lead to increases in greenhouse gases, according to the International Energy Agency.
“Rapid improvements in energy efficiency have helped limit energy demand growth from data [centers] and data transmission networks, which each account for about 1-1.5% of global electricity use,” the agency stated on its website, adding that government and industry efforts play a large role in reducing emission growth over the next decade.
Contributing: Reuters
