Saudi Arabia is strategically pivoting from its long-standing reliance on oil to becoming a global leader in artificial intelligence and digital infrastructure. Spearheaded by Crown Prince Mohammed bin Salman (MBS), this ambitious transformation involves a significant investment of US$5 billion in a new data center near the Red Sea. This facility is designed to offer substantial computing power, essential for advancing AI development across Europe and other regions.
The kingdom is leveraging its vast financial resources and abundant, cheap energy to attract major tech players. Executives from leading American companies like OpenAI, Google, Qualcomm, Intel, and Oracle have engaged with Saudi officials, signaling strong interest. MBS’s recent visit to the White House underscored these global aspirations.
A key initiative is ‘Humain,’ launched in May, which aims to handle a significant portion of global AI workloads in the coming years. Should it succeed, Saudi Arabia would stand alongside the United States and China as a dominant force in AI computing. To bolster this, the nation is concurrently developing three major data center complexes to attract foreign investment and secure its position in the global AI race.
While the UAE is also investing heavily in AI through partnerships, Saudi Arabia is navigating complex geopolitical waters. Its burgeoning relationship with China raises concerns for potential US tech collaborations, given Washington’s apprehension about Beijing’s influence. MBS has adeptly managed these relationships, fostering ties with the US while welcoming Chinese investment, as seen with Saudi Aramco utilizing Chinese AI company DeepSeek.
The Humain initiative’s roadmap includes acquiring advanced semiconductors and a substantial deal with Amazon for AI infrastructure. The expansion of the kingdom’s electrical grid is crucial to powering these new facilities, positioning Saudi Arabia as a potential third global AI hub.
MBS’s recent US visit highlighted significant economic and defense commitments, including potential investments of up to $1 trillion and agreements on advanced weaponry. This outreach served as a political resurgence, establishing the Crown Prince as a key figure in the Middle East’s strategic future. By combining unconventional energy policies with aggressive investment, MBS has made Saudi Arabia too vital for the US to ignore, while his engagement with China suggests a readiness to explore deeper partnerships should Washington hesitate.