Saudi Arabia Fuels AI Infrastructure Growth with Data Instead of Oil

Saudi Arabia is advancing its artificial intelligence capabilities through a new 500-megawatt data center initiative, aiming to establish itself as a leading global AI center. This project, which involves Elon Musk's

, highlights Crown Prince Mohammed bin Salman's broader plan to diversify the nation's oil-centric economy and secure a prominent position in emerging technologies.

Led by Humain—a government-supported technology company created by Saudi Arabia’s $1 trillion Public Investment Fund (PIF)—the plan will enable the country to build data centers with a total capacity of up to 6.6 gigawatts by 2030. This would rank Saudi Arabia among the world’s top three exporters of computing power, just behind the United States and China. Tareq Amin, CEO of Humain, pointed out that Saudi Arabia’s plentiful energy resources and cost advantages could allow them to offer computing services at prices 20% to 30% below global standards

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This data center strategy is in line with Saudi Arabia’s Vision 2030, which aims to decrease the country’s dependence on oil and promote growth through innovation. Humain has already formed alliances with leading American semiconductor companies, such as

, Inc., and , and is also working with AI firms like Anthropic and xAI. Musk’s participation demonstrates Saudi Arabia’s attractiveness to major technology players, as the kingdom seeks to become a center for advanced AI research and development.

This data center project builds on recent achievements, such as the launch of Neom—a $1.5 trillion smart city—and the Future Investment Initiative (FII) conference, where Amin introduced Humain One, an operating system focused on AI. These developments put Saudi Arabia in competition with the UAE’s G42 and other regional AI efforts.

Industry analysts observe that Saudi Arabia’s model blends long-term state planning with incentives for the private sector, potentially speeding up infrastructure growth. “There’s an advantage, in a sense, to having a government that can plan for the long term,” said Sarah Friar, CFO of OpenAI, during an FII panel discussion. The success of these plans will rely on continued access to U.S. technology and the ability to maintain political stability in a volatile region.

Nonetheless, the project’s progress depends on U.S. approval for the export of advanced chips, a process complicated by security concerns. The U.S. has enforced strict controls to keep sensitive technology from reaching China, one of Saudi Arabia’s major trading partners. Amin has reassured U.S. authorities that Humain will source exclusively from Western suppliers, but

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Saudi Arabia’s shift toward AI also faces financial challenges. Lower oil prices and a widening budget deficit have put pressure on public finances, leading the PIF to focus more on domestic projects. Humain’s creation—which merges existing state technology assets and brings in private investment, including a $3 billion partnership with Blackstone Inc—

of leveraging sovereign wealth and foreign capital to fund its ambitions.

For xAI, this collaboration opens up opportunities in a market with abundant energy and a clear vision for AI development. Musk’s xAI has previously worked with Saudi partners, and the 500 MW facility could become a key part of its global computing infrastructure. At the same time, Saudi Arabia gains a prominent partner as it seeks to transform its economic landscape.

As Saudi Arabia moves ahead, this project illustrates how technology and geopolitics are increasingly intertwined, with AI infrastructure emerging as a major front in global competition.

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