Saudi Arabia is making a bold move to redefine its economic future, aiming to transition from an oil-dependent economy to a leading force in artificial intelligence and digital infrastructure. Central to this vision is a monumental US$5 billion data center project slated for development near the Red Sea, designed to offer colossal computing capacity that will fuel AI advancements across Europe and beyond.
Historically reliant on fossil fuel exports, Saudi Arabia is now channeling its immense wealth into cultivating computing power, the most coveted resource in today’s digital landscape. Crown Prince Mohammed bin Salman (MBS) is at the forefront of this transformative agenda, leveraging the kingdom’s inexpensive energy, expansive landmass, and deep financial reserves to attract international tech giants keen on building substantial AI data centers.
American technology giants are already key targets. Executives from prominent companies including OpenAI, Google, Qualcomm, Intel, and Oracle have attended Saudi Arabia’s influential Future Investment Summits. MBS’s recent high-profile visit to the White House further amplified his global ambitions.
The launch of ‘Humain,’ a national AI initiative, in May signals Saudi Arabia’s intent to manage approximately 6% of global AI workloads in the coming years. Success in this endeavor would position the kingdom alongside the United States and China as a major contender in the global AI computing arena. To achieve this, Saudi Arabia is simultaneously constructing three extensive data center complexes, aiming to secure vital foreign partnerships and its standing in the international AI race.
While the UAE is also investing heavily in AI, indicating regional competition, Saudi Arabia is carefully managing its relationships with both the US and China. Its deepening ties with Beijing present a complex dynamic for potential collaborations with American tech firms, given ongoing US concerns about Chinese technological influence.
MBS has shown remarkable diplomatic skill in balancing these relationships. He has maintained close ties with US leadership while actively encouraging Chinese investment, as demonstrated by Saudi Aramco’s collaboration with DeepSeek, a Chinese AI company, to improve operational efficiency.
The Humain initiative’s supply chain plans include acquiring cutting-edge semiconductors from global leaders and a significant US$5 billion investment from Amazon for AI infrastructure. Crucially, the kingdom is expanding its electrical grid to support these power-hungry data centers, setting the stage for Saudi Arabia to emerge as a third global AI powerhouse.
MBS’s recent diplomatic efforts in Washington yielded substantial economic commitments, including potential investments of up to $1 trillion in the US, and secured agreements for advanced defense systems and AI infrastructure access. This strategic outreach signifies a powerful resurgence for the Crown Prince and solidifies Saudi Arabia’s growing influence in global affairs and future technologies.