Trump’s Government Interventionism Takes Shape: A Fourth Industry in the Crosshairs?

TradingKey - Using Intel as a model, the Trump administration is shaping a new form of “state capitalism” — “subsidies for equity.” By examining cases like Intel, defense contractors, and Fannie Mae and Freddie Mac, experts are identifying the selection criteria behind Trump’s interventionist strategy, with a fourth target possibly being the rapidly growing data center industry.

After securing a 10% stake in Intel at virtually no additional cost, President Trump said at the White House last week that he wants to see “many more Intel-type cases,” sparking concerns over the escalation of government intervention in corporate America.

Despite criticism over undermining free enterprise, other members of the Trump team have welcomed this new model of state intervention. U.S. Commerce Secretary Howard Lutnick hinted that the administration is considering taking an equity stake in Lockheed Martin, America’s top defense contractor, calling it “basically a branch of the U.S. government.”

Treasury Secretary Scott Bessent, in a recent interview, asked:

“Could there be other industries that we're reshaping? Something like shipbuilding? Sure.”

He added that the privatization plans currently under discussion for Fannie Mae and Freddie Mac — both previously bailed out by the government — may still include retaining a government ownership stake.

Darrell West of the Brookings Institution said AI data centers could be the next target for the Trump administration.

West explained that data centers consume massive amounts of energy and require lengthy approval processes, giving the government significant leverage. These companies often need government support to execute their plans, making them vulnerable to political influence.

Todd Tucker, Director of Industrial Policy and Trade at the Roosevelt Institute, said that the types of sectors ripe for equity investments are those that are ripe for industrial policy more broadly: products or activities that the rest of the economy relies on.

Additionally, another factor is the government’s desire for strategic influence, which Trump himself has acknowledged.

West pointed out that defense companies have a special vulnerability — they are essentially forced to comply. While it’s unclear what exact terms Trump might demand, these firms must agree to any conditions, or risk losing government contracts and facing collapse.