Saudi Arabia is building one of the most powerful AI data centres in the world. Designed to process vast amounts of data and support next-generation AI applications. The new facility is part of a major push to establish the kingdom as a global technology leader.

With the growing influence of AI in industries from finance and healthcare to energy and smart cities, Saudi Arabia is investing heavily in the infrastructure needed to support its ambitions. The new data centre will play a key role in powering AI-driven projects, accelerating research, and attracting international partnerships.

The project is part of Saudi Arabia’s Vision 2030 plan to reshape its economy. By building up its AI and cloud computing infrastructure, the country is setting the stage for long-term growth in technology, innovation, and digital services.

What is the Saudi AI data centre?

A $5 billion investment will fund the centre which is set to be built in Oxagon, the industrial hub of NEOM. The agreement, signed between DataVolt and NEOM, will create a 1.5-gigawatt AI-powered facility, making it one of the largest of its kind.

The fully sustainable centre will support AI research, cloud computing, and data-intensive industries, providing high-performance infrastructure for finance, healthcare, cybersecurity, and smart city applications. By hosting the project in Oxagon, Saudi Arabia is integrating AI with its ambition to build the world’s largest floating industrial complex.

Backed by government agencies and private sector partners, the centre strengthens Saudi Arabia’s push to lead in AI and automation. It will serve as a key hub for processing massive datasets, training advanced machine learning models, and supporting other AI-driven applications. By integrating with NEOM’s industrial and smart city projects, it also lays the groundwork for real-world AI deployment at scale

How it works and what makes it different

The AI data centre in Oxagon is built for efficiency, sustainability, and scale. It will run on renewable energy, reducing reliance on traditional power sources while supporting high-performance AI operations. Its cooling systems are designed to handle intense processing loads with minimal energy waste, making it one of the most efficient centres of its kind.

Security is another priority. The facility will integrate advanced cybersecurity protocols to protect sensitive data, ensuring compliance with global standards. It will also house machine learning infrastructure, enabling businesses and researchers to develop and deploy AI solutions on a massive scale.

The project reflects Saudi Arabia’s broader digital strategy, providing the backbone for innovations in automation, smart industries, and cloud computing—all while keeping sustainability at its core.

Why Saudi Arabia is investing in AI infrastructure

Saudi Arabia is betting big on AI as part of its plan to diversify the economy beyond oil. The country wants to position itself as a leader in emerging technologies, with AI playing a key role in finance, healthcare, and urban development.

This data centre will support AI-driven industries, helping businesses process massive datasets, automate operations, and develop smarter services. It also ties into Saudi’s push for smart cities, where AI will manage everything from traffic systems to energy grids.

By investing in AI infrastructure, Saudi Arabia aims to attract global tech companies, develop homegrown talent, and build a digital economy that can compete on the world stage.

The expected impact

The centre is likely to create opportunities across multiple industries which will help to attract global tech firms, researchers, and startups to the Kingdom. Businesses that rely on AI and cloud computing will gain access to faster, more efficient processing power, reducing costs and increasing performance.

The project is also expected to generate jobs, bringing demand for AI engineers, data scientists, and cybersecurity experts. Saudi Arabia has been investing in upskilling local talent, and this centre will give graduates and professionals hands-on experience in a growing field.

Beyond employment, it also strengthens Saudi’s position in the global AI economy, making it a key player in a sector that is shaping finance, healthcare, logistics, and urban development.

The future of AI in Saudi Arabia

This development is a major step toward expanding Saudi’s digital economy. The scale of investment and infrastructure is a sign of its commitment to high-performance computing.

As AI adoption accelerates, this project will play a key role in shaping industries that rely on data-driven technologies, and with ongoing investments in digital infrastructure expected, Saudi is both positioning itself as a leader in this area and setting the stage for future developments in automation, cybersecurity, and smart technologies.

How can Sovereign PPG help?

Sovereign PPG provides expert support in corporate structuring, AI investments, and business expansion across Saudi Arabia and the wider Gulf region. Our team works closely with government entities and private sector partners to navigate regulations and secure strategic opportunities.

Whether you need guidance on setting up in NEOM, investing in AI infrastructure, or managing corporate operations in Saudi Arabia, we’re here to assist.

Get in touch at +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email ksa@sovereigngroup.com, or fill out the contact form below.