In a striking pivot, Saudi Arabia is funneling billions into becoming a major global player in artificial intelligence. Near the Red Sea, a colossal $5 billion data center is underway, promising to deliver immense computing power to developers across Europe. On the kingdom’s eastern flank, another multi-billion-dollar facility is planned to serve AI innovators in Asia and Africa.
Historically known for its vast oil exports, Saudi Arabia is now set on supplying the digital age’s most precious commodity: computing muscle.
Crown Prince Mohammed bin Salman is spearheading this ambitious transformation, leveraging the nation’s abundant, cheap energy, extensive land, and deep financial reserves – all critical components for the massive, energy-intensive data centers essential to modern AI. The kingdom is actively engaging with leading American tech companies, discussing partnerships and the utilization of these upcoming facilities. High-profile executives from OpenAI, Google, Qualcomm, Intel, and Oracle are set to attend Saudi Arabia’s annual Future Investment Initiative, colloquially known as “Davos in the Desert.” Prince Mohammed himself is slated for a visit to the United States next month.
Sources indicate a significant deal is taking shape to provide computing power to Elon Musk’s xAI. Saeed Al-Dobas, a senior executive at Humain, a new state-backed entity coordinating numerous AI projects, shared insights into these discussions.
“Amazon was here yesterday. Microsoft we had this morning,” Al-Dobas stated in a recent interview, adding that negotiations with Musk involve an “even bigger plan.”
Established by Prince Mohammed in May, Humain aims to process approximately 6 percent of the world’s AI workload in the coming years. This ambitious target would elevate Saudi Arabia, currently responsible for less than 1 percent, to a position rivaling only the United States and China in providing crucial computing power, according to analytics from Synergy Research Group.
The kingdom is developing three large-scale data center complexes specifically designed to attract international companies, with Saudi executives projecting costs could be at least 30 percent lower than in the United States. Construction permits are expedited, and strategic undersea and fiber-optic networks mean these hubs will be accessible to nearly four billion people across three continents.
Addressing potential concerns in the authoritarian state, Saudi Arabia is exploring “data embassy” zones. These would allow foreign firms to operate under their own national laws, rather than Saudi jurisdiction, enhancing trust and security.
Amazon has confirmed its collaboration with Humain to “accelerate Saudi Arabia’s vision to become a global A.I. leader.” Microsoft declined to comment, and xAI did not respond to inquiries.
However, skepticism lingers. Saudi Arabia currently possesses a limited pool of AI talent. Some experts caution against a potential global oversupply of computing capacity as various governments and corporations hastily construct data centers without a clear path to profitability.
“You can never say never, but I can’t imagine any circumstances that would enable Saudi to achieve 6 percent of the world’s A.I. compute capacity,” remarked John Dinsdale, a senior analyst at Synergy.
Just as the kingdom benefited from alliances in the oil sector through OPEC Plus, it now seeks to carve out a similar influential role in AI. Yet, in this new domain, such formalized cooperation is absent. Saudi Arabia is also contending with regional rivals like the United Arab Emirates, which recently unveiled its own multi-billion-dollar AI initiative with OpenAI in Abu Dhabi.
These plans unfold amidst a delicate U.S. foreign policy strategy that leverages access to advanced AI chips to encourage nations to distance themselves from China. Following President Trump’s visit to Riyadh in May, American companies like Nvidia received preliminary approval to sell AI chips to Saudi Arabia. However, final clearance from Washington is still pending, fueled by ongoing concerns about Riyadh’s deepening ties with Beijing.
Prince Mohammed has skillfully navigated the U.S.-Chinese tech rivalry, avoiding outright allegiance. The kingdom maintains strong relationships with Mr. Trump, notably through a recent $55 billion partnership with his son-in-law, Jared Kushner, for Electronic Arts. Simultaneously, Saudi Arabia actively welcomes Chinese investment; for instance, Chinese AI firm DeepSeek utilizes data centers managed by Aramco, the Saudi state oil giant. An investment vehicle partially owned by Aramco has also invested in ZhipuAI, a prominent Chinese AI company.
Furthermore, Chinese researchers linked to military-affiliated universities in China have access to powerful AI computing resources at Saudi Arabia’s King Abdullah University of Science and Technology.
Some American officials advocate for allowing U.S. and Chinese technology to compete freely without security restrictions. If this approach prevails, Saudi Arabia could potentially become a pioneering nation where significant American and Chinese AI infrastructures coexist and compete directly.
The Crown Prince Is Calling
The genesis of Humain can be traced back to an urgent call Tareq Amin, an Aramco executive, received at 2 a.m. in August 2024 while on a birthday trip in Dubai. “You need to fly back to Riyadh,” he was instructed.
According to Amin, the summons came from an aide to Prince Mohammed, who demanded an immediate meeting with business and government leaders to strategize Saudi Arabia’s AI future. Amin promptly caught a flight and headed directly to the royal court in Riyadh.
This wasn’t the Prince’s first foray into AI strategy. In 2019, he founded the Saudi Data & AI Authority, a government body tasked with developing tools such as an Arabic chatbot. Aramco followed suit in 2023, establishing a digital division focused on AI and other advanced technologies.
Following the pivotal 2024 meeting, Prince Mohammed launched Humain, envisioning it as the AI equivalent of Aramco. Bolstered by Saudi Arabia’s approximate $1 trillion sovereign wealth fund, Humain integrated existing AI initiatives with new expansion ventures. In May, the company announced plans to construct data centers, invest in promising startups, and develop a suite of AI services. Prince Mohammed assumed the role of chairman, with Amin appointed as chief executive.
“I knew that we were behind in every facet,” Amin admitted. “The goal is to create a national entity that is focused on the A.I. total value chain.”
Since its inception, Humain has secured deals to procure semiconductors from industry leaders Nvidia, AMD, and Qualcomm. It also finalized a $5 billion agreement with Amazon to build its AI infrastructure. The company has since unveiled its own “helpful and harmless” Arabic chatbot, designed to avoid sensitive political and cultural topics, alongside an AI-powered laptop and a meeting transcription tool.
Qualcomm views Saudi Arabia as a “digital bridge between continents.” Nvidia stated its agreements support U.S. interests, while AMD emphasized that its partnership with Humain advances “U.S. leadership in the global A.I. race.”
Previous human rights concerns, which once deterred some international companies, have largely receded. Saudi Arabia is banking on its exceptionally cheap electricity to make AI development and deployment significantly more affordable, a draw tech firms may find irresistible.
“If you lower the cost by 20 to 40 percent and offer this to a global market, people will come,” Amin confidently stated.
The kingdom is rapidly expanding its electrical grid. Humain projects its facilities near Riyadh and Dammam, in the Eastern Province, will achieve 6.6 gigawatts of capacity by 2034 – demanding power equivalent to over six nuclear reactors. DataVolt, a subsidiary of a Saudi industrial conglomerate, is constructing the major data center along the Red Sea, with phased operations beginning in 2028.
“Right now there are two epicenters — the United States of America and China,” said Rajit Nanda, DataVolt’s chief executive. “There’s room for someone to be the third epicenter and the fourth epicenter.”
The U.S.-China Dance
A significant obstacle to Saudi Arabia’s AI ambitions is the scarcity and restricted access to U.S.-made AI semiconductors, which are vital for powering these data centers.
Securing these critical components hinges on the support of the U.S. administration. Earlier this year, Saudi officials engaged in discussions in Washington to facilitate the procurement of AI chips, coinciding with preparations for President Trump’s visit to the Persian Gulf.
During these meetings, U.S. officials expressed apprehension that Saudi Arabia was not adequately addressing concerns regarding potential security threats posed by its relationship with China, according to two sources privy to the negotiations.
At one juncture, Saudi officials reportedly questioned the necessity of adhering to U.S. export control regulations that would restrict the use of these chips. They even suggested segregating Chinese chips within data center complexes, physically separating them from those supplied by U.S. manufacturers like Nvidia, as three sources with knowledge of the talks revealed.
Upon President Trump’s visit to Riyadh in May, Humain received preliminary approval to purchase 18,000 AI chips from Nvidia, with further allocations expected. DataVolt was also slated to receive a separate quota. However, five months later, final sales approvals remain pending.
Saudi Arabia finds itself in a state of uncertainty, a situation mirrored by other Gulf nations. The United Arab Emirates, for instance, appeared to be on track for its own allocation of AI chips following a recent announcement of a data center collaboration with OpenAI. Last year, Emirati firm G42, a partner in the project, agreed to divest technology from the Chinese tech company Huawei in exchange for access to AI chips.
The White House’s Office of Science and Technology Policy and the Commerce Department did not respond to requests for comment regarding these developments.
Both Humain and DataVolt have publicly stated their commitment to prevent Chinese companies from utilizing their data centers. Nevertheless, ties between China and Saudi Arabia have significantly strengthened since at least 2019, when Chinese firms played a key role in upgrading the kingdom’s telecommunications infrastructure. In February, DeepSeek formalized an agreement to operate within Aramco data centers. Furthermore, an investment firm partially owned by Aramco has made investments in ZhipuAI, a prominent Chinese AI company.
Chinese researchers with affiliations to Chinese military-linked universities also maintain access to a powerful AI computer located at Saudi Arabia’s King Abdullah University of Science and Technology.
Some American officials contend that fostering direct competition between American and Chinese technology, unburdened by security constraints, is the most effective approach. Should this perspective prevail, Saudi Arabia could potentially become a pioneering nation where significant American and Chinese AI infrastructures coexist and compete directly.
On the outskirts of Riyadh this month, construction crews were busy leveling land for a new DataVolt data center. Trenches were being dug for vital networking and electrical connections. Just beyond a security fence, Amazon was in the final stages of completing its own facility.
“Everyone is investing,” remarked Hani Rabi, a manager for the Saudi construction firm Comatec. “It’s booming.”
Vivian Nereim contributed reporting from Riyadh.