WEBVTT - DAMAC Properties Chairman, Founder Hussain Sajwani Talks US Data Center Investment 0:00:02.520 --> 0:00:09.319 Bloomberg Audio Studios, podcasts, radio news. The Dubai property group 0:00:09.400 --> 0:00:12.719 DAMAK will be investing twenty billion dollars in new US 0:00:12.920 --> 0:00:16.560 data centers. The President's elect unveiled the deal alongside DAMAK 0:00:16.640 --> 0:00:19.960 founder an Cha Hussein Sejuani from mar Lago. 0:00:21.280 --> 0:00:28.240 The first phase of the project will be in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, 0:00:28.280 --> 0:00:33.279 Michigan and Indiana. Those places, and who's saying, I'd love 0:00:33.320 --> 0:00:34.960 you to come up and say a few words. Thank 0:00:34.960 --> 0:00:37.320 you very much, thank you, thank. 0:00:37.159 --> 0:00:42.600 You, thank you, miss our president. It's been amazing news 0:00:42.680 --> 0:00:47.200 for me and my family when he was elected in November. 0:00:50.080 --> 0:00:53.240 Sejjuani, mar a Lago earlier on this week. Now back 0:00:53.280 --> 0:00:57.480 in Dubai and joining us from there, Good morning, Thank 0:00:57.480 --> 0:01:00.320 you very much, indeed for your time. Let's talk about 0:01:00.360 --> 0:01:02.480 the deal that was announced earlier on this week. A 0:01:02.520 --> 0:01:05.400 lot of details obviously still need to be ironed out. 0:01:05.480 --> 0:01:09.679 I suspect, but when are we going to see ground 0:01:09.680 --> 0:01:13.000 being broken? When are these data centers gonna be built? 0:01:14.880 --> 0:01:18.880 As you appreciate, the announcement is only last less than 0:01:18.959 --> 0:01:21.839 forty eight hours, where me and my team are working 0:01:21.920 --> 0:01:25.440 very hard. We had already some discussions with a number 0:01:25.520 --> 0:01:29.280 of land owners in different parts of the States. The 0:01:29.360 --> 0:01:32.920 team is working and we hope sometime this year we'll 0:01:32.959 --> 0:01:36.399 be announcing some oppositions of lands and then of course 0:01:36.600 --> 0:01:40.080 we'll follow that design and construction. So there is a 0:01:40.080 --> 0:01:42.240 lot of work that we have to do to invest 0:01:42.240 --> 0:01:43.480 the twenty billion dollar. 0:01:45.000 --> 0:01:47.960 Twenty billion dollars, that's a substantial amount of money. How 0:01:48.000 --> 0:01:51.920 are you funding this deal? Can you provide specific details 0:01:52.520 --> 0:01:55.600 on where that twenty billion is coming from? 0:01:56.240 --> 0:02:00.840 As you appreciate, this is an acid base business infrastructure. 0:02:01.320 --> 0:02:04.480 Normally sixty to seventy percent you borrow from the banks 0:02:04.560 --> 0:02:09.720 or promise financial institutions or bonds leverage. Dem at Property 0:02:10.320 --> 0:02:13.560 will be able to put the equity which will be 0:02:13.600 --> 0:02:17.079 in the range of the other thirty percent, which will 0:02:17.120 --> 0:02:20.600 be a bound five to six billion dollar. Demat Property 0:02:20.639 --> 0:02:23.800 is balanceship today is capable of producing that money in 0:02:23.800 --> 0:02:26.200 the coming four years for its own resources. 0:02:26.400 --> 0:02:29.560 Having said that, if the opportunity increases and we get 0:02:29.560 --> 0:02:32.760 more opportunity, will be more than happy to bring their 0:02:32.840 --> 0:02:34.240 party partners with us. 0:02:36.040 --> 0:02:38.359 Who's saying it's creedy in London when you talk about 0:02:38.400 --> 0:02:40.840 those third party partners who are you talking about specifically? 0:02:40.880 --> 0:02:43.440 Are there banks, for example, that you have in mind. 0:02:44.639 --> 0:02:48.079 Were already talking first our first line is to talk 0:02:48.160 --> 0:02:52.200 to partners in US who will bring added value. If 0:02:52.200 --> 0:02:55.919 they are in the construction business, they are in the 0:02:56.040 --> 0:02:59.200 land business, they're in the power business. So first we're 0:02:59.200 --> 0:03:02.680 looking at added value partner not just to bring money, 0:03:02.680 --> 0:03:05.919 but to bring to help us to execute in this business. 0:03:06.080 --> 0:03:07.640 That will be the first choice. 0:03:09.440 --> 0:03:11.959 So who's saying part of this announcement with certain states 0:03:12.040 --> 0:03:16.400 that your investments are targeting lights of Michigan, Illinois among 0:03:16.480 --> 0:03:19.400 others Texas for example, are there specific players within those 0:03:19.400 --> 0:03:22.640 states that might help you get to those investment plans? 0:03:23.520 --> 0:03:26.040 Indeed, indeed, I mean we are open to all the 0:03:26.080 --> 0:03:31.320 options to execute the business plan from partners who are 0:03:31.320 --> 0:03:34.240 in their business or who will help grow their business. 0:03:36.760 --> 0:03:39.120 When it comes to those kind of partnerships, though, is 0:03:39.160 --> 0:03:41.440 state funding something that we're talking about. We know that 0:03:41.520 --> 0:03:44.200 Donald Trump, for example, has already asked you to double 0:03:44.240 --> 0:03:46.320 the investment, not just keep it at twenty billion, and 0:03:46.360 --> 0:03:49.440 go further. If you're talking about further investment in the 0:03:49.560 --> 0:03:52.320 United States, how much further do you have a number 0:03:52.360 --> 0:03:52.640 on that. 0:03:54.120 --> 0:03:55.960 I don't have a number on that. But as you know, 0:03:56.000 --> 0:03:59.000 it's a market and it's an opportunity today with AI 0:03:59.120 --> 0:04:03.280 data centers. Appreciate the business data center is growing in 0:04:03.360 --> 0:04:06.280 more than double digit and there is a huge growth there. 0:04:06.480 --> 0:04:09.760 So if we find the right opportunity, the right partners, 0:04:10.120 --> 0:04:13.240 I think we have the capability to take their business 0:04:13.280 --> 0:04:14.720 further beyond the twenty. 0:04:14.480 --> 0:04:18.119 Billion for saying good morning, it's Lizzie here in London 0:04:18.160 --> 0:04:21.280 as well. I know that the UKAE has gone big 0:04:21.400 --> 0:04:24.240 on AI investments over the past couple of years. Will 0:04:24.240 --> 0:04:28.800 the government be helping in any way or backing this project? 0:04:29.720 --> 0:04:32.760 No, we're not talking at the moment to any government backing. 0:04:33.040 --> 0:04:36.279 We're talking, as I said, to landowners and then to 0:04:36.400 --> 0:04:37.960 potential partners. 0:04:39.080 --> 0:04:41.480 But is the WW government supporting you? 0:04:43.320 --> 0:04:45.640 By the moment, We're not looking at any support from 0:04:45.680 --> 0:04:48.440 any government things. It's going to be very much commercial 0:04:48.760 --> 0:04:49.920 business plan. 0:04:51.560 --> 0:04:52.360 Sorry to clarify. 0:04:52.400 --> 0:04:53.000 Are they aware? 0:04:55.200 --> 0:04:58.039 Of course, everybody knows about it, and they were aware 0:04:58.040 --> 0:05:01.320 of our intention to invest globally. As you appreciate, we 0:05:01.360 --> 0:05:05.240 have already a data center under construction in three countries 0:05:05.240 --> 0:05:08.680 in Asia, three countries in Europe, Middle East. We are 0:05:08.720 --> 0:05:13.560 in more than ten countries around the world, covering Indonesia, Jaka, Indonesia, 0:05:13.600 --> 0:05:21.120 Thailand and Malaysia, Greece, Spain, and Italy coming next, Hussain. 0:05:21.480 --> 0:05:25.360 In your press conference with Donald Trump, you specifically made 0:05:25.400 --> 0:05:28.000 the comment that you've been waiting for years to invest 0:05:28.080 --> 0:05:30.240 in the AI space in the United States. You specifically 0:05:30.320 --> 0:05:32.960 said you've been waiting for four years to invest in 0:05:33.000 --> 0:05:36.599 the AI space between the election of Donald Trump and 0:05:36.600 --> 0:05:39.480 the administration of Joe Biden. Several of your other counterparts 0:05:39.520 --> 0:05:41.960 around the world have already been investing in AI in 0:05:42.000 --> 0:05:45.680 a big way. What has changed fundamentally to incentivize this 0:05:45.760 --> 0:05:46.240 move from you? 0:05:48.040 --> 0:05:51.400 In the last four years, we have invested more than 0:05:51.760 --> 0:05:55.120 and committed about two billion dollars in the private equity 0:05:55.680 --> 0:05:59.400 and in some direct deals like we are investor in XAI, 0:05:59.480 --> 0:06:03.520 in open Ai, you know, in the space x and 0:06:03.560 --> 0:06:06.120 we are more than sixty funds in the US. So 0:06:06.160 --> 0:06:09.200 we're not to stop investing, but we were investing through funds, 0:06:09.560 --> 0:06:13.640 investing directly. We wanted to see more friendly government who 0:06:13.760 --> 0:06:17.360 encourages the foreign investments, and we feel is the right time. 0:06:17.200 --> 0:06:21.360 Now there saying just coming there's kind of quick kind 0:06:21.360 --> 0:06:23.799 of quick questions just returning to the issue of funding. 0:06:24.120 --> 0:06:27.080 The funding is you are one hundred percent guaranteeing that 0:06:27.120 --> 0:06:30.400 the funding exists for this deal, that it's already in place, 0:06:30.520 --> 0:06:32.640 that you secure that funding, that you are ready to go. 0:06:32.720 --> 0:06:35.679 That's my first question is that a yes or no answer. 0:06:36.000 --> 0:06:37.039 Is the funding in place? 0:06:38.640 --> 0:06:42.159 The funding, our equity is in place. That debt will 0:06:42.200 --> 0:06:44.839 come as we go and as we build those data centers. 0:06:47.480 --> 0:06:49.200 That brings me on to the second point. You say 0:06:49.240 --> 0:06:51.600 you're going to build them. Are you going to build 0:06:51.640 --> 0:06:53.799 them or are you going to do the land deals 0:06:53.880 --> 0:06:55.880 and then let somebody else build them? Is that the 0:06:55.880 --> 0:06:57.039 way the model is going to work. 0:06:57.960 --> 0:07:00.799 No, the model is we buy the land, we hire 0:07:00.839 --> 0:07:04.000 a designer, and then we hire a contractor who will 0:07:04.000 --> 0:07:06.960 build it, and then we lease it to the hyper scalers. 0:07:09.560 --> 0:07:12.480 Whosaying, speaking of the hyperscalers, are there customers that you 0:07:12.560 --> 0:07:14.760 have in mind when it comes to who may, at 0:07:14.760 --> 0:07:16.280 the end of the day be some of the buyers 0:07:16.520 --> 0:07:17.600 of these data centers? 0:07:19.600 --> 0:07:21.680 You mean, you mean they're lazy. We're not going to 0:07:21.760 --> 0:07:24.160 sell at the center, but we're going to lease them. 0:07:24.440 --> 0:07:26.520 We're gonna we're gonna lead them to the hyper scaler, 0:07:26.560 --> 0:07:30.160 which are non Amazon, Microsoft, Google or a kill you 0:07:30.760 --> 0:07:34.600 and some large fourteen five hundred companies IBM and adults. 0:07:36.120 --> 0:07:38.600 Have you started having those conversations with them. 0:07:39.080 --> 0:07:42.160 We were having conversation with them about Asia and Europe 0:07:42.240 --> 0:07:45.720 for the last twelve months, and we have quite advanced 0:07:45.720 --> 0:07:49.040 in negotiation with some of them to finalize a deal 0:07:49.920 --> 0:07:52.480 and part of where we have data centers already. 0:07:54.120 --> 0:07:56.960 But when it comes to some of those negotiations, why 0:07:57.000 --> 0:07:59.800 not already have those investments in the United States again 0:07:59.840 --> 0:08:02.520 with the same players that you're working with in Asia 0:08:02.560 --> 0:08:04.440 and Europe as well. You made the comment of now 0:08:04.480 --> 0:08:08.040 having a friendlier government in place in the United States 0:08:08.160 --> 0:08:11.840 that is friendlier to foreign investment. Someone argued, that's the 0:08:11.840 --> 0:08:15.480 exact opposite message that Donald Trump is giving. Why not 0:08:16.000 --> 0:08:18.480 invest in the US earlier? Aren't you coming a little 0:08:18.480 --> 0:08:19.400 bit late to the game here? 0:08:20.680 --> 0:08:22.920 No, we're not late in the game because this AI 0:08:23.080 --> 0:08:27.040 business already started only last eighteen or twenty four months, 0:08:27.280 --> 0:08:30.280 and we've been quite focused on Asia and Europe in 0:08:30.360 --> 0:08:33.480 the year twenty three twenty four and now our focus 0:08:33.520 --> 0:08:35.520 is going to be heavily on us. 0:08:36.960 --> 0:08:39.199 Saying in terms of those potential customers, have you spoken 0:08:39.280 --> 0:08:42.080 to or met with Samuel Man and Elon Musk. 0:08:43.760 --> 0:08:46.559 Yeah, we were together there at the New Year on 0:08:46.679 --> 0:08:49.360 the same you know in Marie Lago and is an 0:08:49.400 --> 0:08:52.280 amazing gentleman with a vision and of course you know 0:08:52.360 --> 0:08:56.480 his accomplishments. We are already investor in these companies face 0:08:56.760 --> 0:08:58.240 X and XI. 0:09:00.640 --> 0:09:05.160 It's about Selon Musk. Have you met sam Oltman? Ad 0:09:06.880 --> 0:09:07.559 sam Oltman? 0:09:09.120 --> 0:09:10.760 No, I don't remember anybody like that. 0:09:13.440 --> 0:09:16.360 All right, Damax founder and chairman, who's say Delajuani. We 0:09:16.400 --> 0:09:18.600 will leave the conversation there. We thank you so much 0:09:18.600 --> 0:09:20.439 for your time and of course look forward to getting 0:09:20.440 --> 0:09:23.080 the updates on what that data center investment actually looks like.