Saudi Arabia is aggressively positioning itself to dominate the future of technology, shifting its economic focus from oil exports to becoming a global leader in artificial intelligence and digital infrastructure. A key component of this strategy is a planned US$5 billion data center near the Red Sea, engineered to provide the massive computing power necessary for advanced AI development across Europe and beyond.
Historically, the Saudi economy has been synonymous with fossil fuels. Now, the kingdom is strategically redirecting its substantial wealth into building the essential computing capabilities that define the digital era. Crown Prince Mohammed bin Salman (MBS) is spearheading this ambitious pivot, utilizing the country’s abundant cheap energy, vast geographical space, and considerable financial resources to attract leading global tech companies eager to establish major AI data centers.
American technology titans are already in the spotlight. Executives from industry giants like OpenAI, Google, Qualcomm, Intel, and Oracle have attended Saudi Arabia’s Future Investment Summits, with MBS’s recent visit to the White House underscoring his commitment to international technological leadership.
Launched in May, the national AI initiative ‘Humain’ aims to manage a substantial percentage of global AI workloads in the coming years. If successful, this initiative would place Saudi Arabia on par with the United States and China as a preeminent force in AI computing. To support this vision, the kingdom is simultaneously developing three major data center complexes, actively seeking foreign partnerships to cement its position in the global AI competition.
Skepticism exists, however, with regional rival the UAE also making significant AI investments. Saudi Arabia faces a delicate balancing act, particularly concerning its growing ties with China, which could complicate collaborations with American tech firms due to US security concerns.
MBS has demonstrated a skillful approach to managing these geopolitical complexities. He has cultivated strong relationships with US leadership while simultaneously welcoming Chinese investment. An example of this engagement is Saudi Aramco’s use of DeepSeek, a Chinese AI firm, to optimize operations at one of its data centers.
The Humain initiative’s operational strategy involves acquiring advanced semiconductors from leading manufacturers and a significant US$5 billion investment from Amazon for AI infrastructure. The expansion of Saudi Arabia’s power grid is critical for supporting these energy-intensive data centers, paving the way for the kingdom to emerge as a third major global AI hub.
Navigating the relationship between Washington and Beijing, especially concerning advanced technologies, presents a high-stakes challenge. MBS’s recent US visit was marked by substantial economic pledges, including potential investments totaling up to $1 trillion, alongside defense agreements and access to advanced AI infrastructure, signifying a strategic resurgence for the Crown Prince.