Saudi Arabia plans to transform from oil exporter to artificial intelligence computing powerhouse, aiming to handle six per cent of global AI workload within years through massive data centre investments and partnerships with tech giants, including a potential deal with Elon Musk’s xAI.
The kingdom currently processes less than one per cent of worldwide AI computing but Crown Prince Mohammed bin Salman has launched state-backed company Humain to coordinate the ambitious expansion, reports The New York Times.
Three major data centre complexes are under construction to serve foreign companies, offering computing costs at least 30 per cent cheaper than United States facilities. The projects could deliver 6.6 gigawatts of capacity by 2034, requiring power equivalent to more than six nuclear reactors.
“Amazon was here yesterday. Microsoft we had this morning,” said Saeed Al-Dobas, a senior executive at Humain, describing ongoing negotiations with American technology firms. He added that discussions with Musk involved “a way, way bigger plan” than other partnerships.
Construction permits in weeks
The strategy leverages Saudi Arabia’s advantages of cheap energy, deep pockets and available land needed for power-hungry data centres. Construction permits are granted within weeks, whilst undersea cables and fibre-optic networks provide access to roughly four billion people across three continents.
To address security concerns in the authoritarian state, Saudi Arabia is considering “data embassy” zones where foreign firms could operate under their own national laws rather than Saudi regulations.
However, the kingdom faces significant hurdles, including a shallow pool of AI expertise and scepticism from industry analysts. “I can’t imagine any circumstances that would enable Saudi to achieve six per cent of the world’s AI compute capacity,” John Dinsdale, a senior analyst for Synergy, told The New York Times.
The initiative tests US foreign policy that uses access to advanced AI chips to influence nations away from China. Whilst President Trump gave preliminary approval for 18,000 Nvidia chip sales to Humain during his May visit, final clearance remains pending amid concerns over Saudi Arabia’s Chinese technology ties.
Prince Mohammed has avoided choosing sides in US-Chinese competition, maintaining partnerships with both nations whilst positioning Saudi Arabia as a potential third AI epicentre alongside America and China.
