SAUDI ARABIA PERSPECTIVE

Saudi Arabia is presenting a dramatic narrative: the repurposing of the NEOM megaproject, initially designed as a futuristic city centred on The Line initiative, into a global AI data centre hub. Multiple outlets report that Crown Prince Mohammed bin Salman has recast NEOM as a data centre cluster, aligning with the kingdom's stated ambition to become a global force in artificial intelligence.

The NEOM-DataVolt partnership plans a "net-zero AI factory campus" in the Oxagon region, with $5 billion in first-phase investment and 1.5 GW operational capacity by 2028. NEOM offers natural advantages: seawater access for cooling, abundant land, and inexpensive renewable energy. The region's green hydrogen production facility is 80% complete.

Saudi Arabia's data centre market is growing at 29% annually, driven by Vision 2030 objectives. Yet Saudi media coverage remains almost exclusively promotional, without substantive examination of whether projects launched at such rapid pace prove viable.

NEOM's pivot is instructive: facing the relative underperformance of The Line—construction scaled back to a fraction of original scope—the kingdom is redirecting major investments towards AI infrastructure, capitalising on global energy pressures to position itself as a supplier of "green" computing capacity.