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Saudi Arabia Wants to Be a Data Center Powerhouse. But Can It Deliver?

New projects aim to turn Saudi Arabia and the United Arab Emirates into major players in AI data infrastructure.

Saudi Arabia wants to be a data center powerhouse
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javier-pastor

Javier Pastor

Senior Writer
  • Adapted by:

  • Karen Alfaro

javier-pastor

Javier Pastor

Senior Writer

Computer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.

258 publications by Javier Pastor
karen-alfaro

Karen Alfaro

Writer

Communications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.

521 publications by Karen Alfaro

President Donald Trump is touring the Middle East, brokering a wave of unexpected deals. Saudi Arabia, the United Arab Emirates, and Qatar have pledged billions to build AI data centers—but whether those projects materialize remains uncertain.

Chips for strategic alliances. The Biden administration restricted access to advanced AI chips in the region, citing national security concerns. But Trump’s return to the spotlight is shifting the tone. According to The New York Times, AI chip deals are now being used to strengthen ties with nations where Trump has long-standing business interests. Qatar, for instance, has pledged to donate a Boeing 747-8 to the U.S.—possibly as the new Air Force One.

Saudi Arabia’s stake. Nvidia and AMD have agreed to sell advanced GPUs to Humain, a Saudi company backed by the kingdom’s powerful Public Investment Fund. Humain plans to build large-scale data centers across the country. AMD will support the project by providing chips and software, while Humain oversees infrastructure development. The agreement includes a $10 billion investment over five years.

The UAE’s move. According to Bloomberg, the Trump team is also weighing a deal that would let the UAE import up to 1 million Nvidia chips—roughly 500,000 annually through 2027. Abu Dhabi–based G42 would receive 20% of those chips under the proposed deal.

Saudi data centers in the works. Recently, Nvidia CEO Jensen Huang announced the sale of 18,000 GB300 chips to Saudi Arabia. These GPUs will support Humain’s effort to build data centers with a combined capacity of 1.9 gigawatts by 2030. The chips represent just a fraction of the “hundreds of thousands” reportedly planned for the kingdom’s long-term AI infrastructure.

A risk of resale? Since 2022, the U.S. has restricted sales of high-end AI chips to China, fueling concern that Middle Eastern nations could act as intermediaries. While G42 reportedly severed ties with Huawei to secure a $1.5 billion partnership with Microsoft, skepticism remains over how tightly those export controls will hold.

Saudi Arabia and its mega-promises. Tech analyst Ed Zitron says that Saudi Arabia often announces bold, futuristic projects—but struggles to follow through. Projects like the Jeddah Tower, Mukaab, a new mega-airport, The Line, and the Neom smart city have all faced delays or scaled-back expectations. The AI data center plan may seem more manageable, but it still poses significant challenges for a country with little experience in this space.

Plenty of energy… Saudi Arabia has no shortage of energy. The kingdom continues to invest heavily in solar and traditional energy sources, which are essential to powering massive data infrastructure.

...But not enough water. Cooling remains a major obstacle. Data centers generate intense heat, and Saudi Arabia’s desert climate complicates the task of keeping systems at stable temperatures. With limited water resources, the country will likely depend on desalination plants and new technologies like closed-loop or direct liquid cooling to make the facilities viable.

Image | Neom

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