5 Ways Donald Trump Could Impact the US Data Centre Sector

With the US data centre market having boomed significantly over the past several years, individual states have played a critical role in driving greater investments across the industry.
Local governments and authorities have often offered tax incentives and a range of concessions to entice data centre operators, seeing these digital projects as an effective way to boost GDP and support the community.
Now, US President Donald Trump has returned to office, there are a range of changes expected within the technology world to support national and government interests. Notably, there is hope within the industry that Trump will continue to widely support technology innovation and drive data centre development.
Here is a list of strategies that Trump could employ during his four years in office and what he could do to keep the US data centre industry sweet.
5. Facilitate a data centre building boom
It has become clear that a significant expansion of data centres is required in order to provide the power needed to cater to AI demand across the US.
Such a need for power and digital infrastructure has led to greater data centre construction, which Blackstone believes will see the US reach over US$1tn in data centre investments over the next five years.
Given the continued high digital transformation, Trump could consider nuclear power and grid enhancement strategies in order to support US data centre development.
4. Balance innovation with sustainability
How AI growth is set to be powered is the billion-dollar question, with data centre companies worldwide seeking to lower their emissions whilst also innovating at the same rate.
In the US alone, data centre power consumption is set to reach 35 gigawatts (GW) by 2030, which is more than double its 2022 level.
So far, Trump has not been prioritising sustainability, having pulled the US out of several global climate agreements. However, it remains essential for the global data centre industry to find new ways to keep emissions down to avoid putting pressure on the grid.
Simon Stiell, Executive Secretary of UN Climate Change, said: “The global clean energy boom - worth US$2tn last year alone and rising fast – is the economic growth deal of the decade.
“Embracing it will mean massive profits, millions of manufacturing jobs and clean air.
“Ignoring it only sends all that vast wealth to competitor economies, while climate disasters like droughts, wildfires and superstorms keep getting worse, destroying property and businesses, hitting nation-wide food production, and driving economy-wide price inflation.”
3. Support real estate investments
Financing data centres has become increasingly appealing, given their offer of long-term return on investment.
Trump has already made headway in this area, having signed a US$20bn deal with leading real estate company DAMAC Properties ahead of his return to office.
DAMAC’s pledge is the latest example of an international business leader promising to invest heavily in the US in the wake of Donald Trump winning the November 2024 US Election over Democratic Vice President Kamala Harris.
Trump has been eager to attract international business in the US by offering benefits such as expedited permits for those that invest US$1bn or more.
2. Confront semiconductor challenges
In this area, the Biden Administration entered somewhat of a ‘trade debate’ with the People’s Republic of China over semiconductors, actually placing restrictions on the country’s exports.
That government also authorised the CHIPS and Science Act, which authorised billion-dollar funding to boost national research and manufacturing of semiconductors within the US. Trump has been critical of the CHIPS Act in the past and it remains to be seen if he will continue this funding now that he is in office.
He has also just scrapped a 2023 executive order that mandated safety disclosures from AI companies to the federal government.
1. Further grow the US market
Remaining the largest global market for data centres, the US has enjoyed significant growth in recent years. This has been largely driven by the hyperscale technology giants like Amazon, Google and Microsoft, who have each built significant data centres to run their cloud platforms.
According to the Computer & Communications Industry Association (CCIA), Trump could continue to support this infrastructure growth by helping to increase broadband spectrum, increase US chip production and support data centre development.
“US digital services contribute seven percent of the entire GDP and leading tech companies make up about a third of the value of the S&P 500’s market capitalisation,” comments Matthew Schruers, President and CEO at CCIA.
“Policies that enable growth result in increased benefits to the overall U.S. economy, job creation and help US companies compete with China.”
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