Elon Musk’s artificial intelligence company xAI is exploring a possible expansion into Saudi Arabia, according to Bloomberg. The company is in talks to lease data center space in the Kingdom, drawn by the region’s low electricity costs and favorable regulatory landscape.
xAI has reportedly engaged with Humain, an AI firm supported by Saudi Arabia’s Public Investment Fund. Humain has ambitious plans to build 6.6 gigawatts of data center capacity over the next decade. Another unnamed company, currently constructing a 200-megawatt data center, is also involved in discussions.
Currently, xAI operates a data center in Memphis, Tennessee, and is planning a second facility in the same city. The company’s Colossus supercomputer, launched last year, already runs approximately 100,000 Nvidia GPUs, with expansion plans aiming for 1 million GPUs.
Humain, meanwhile, is set to launch a $10 billion venture capital fund this summer, aiming to position the Kingdom of Saudi Arabia as a leader in the global AI sector. According to Humain’s Chairman, Tareq Amin, this initiative will target promising AI startups and aligns with the country’s Vision 2030 as well as objectives set by the Saudi Data and Artificial Intelligence Authority.
Humain’s strategy includes developing up to 1.9 gigawatts of AI-focused data center capacity by 2030, with a goal of reaching 6.6 gigawatts within four years. A pilot site with 18,000 Nvidia GPUs is expected to be operational next year. The company has also secured $23 billion in agreements with major technology firms such as Nvidia, AMD, Amazon Web Services, and Qualcomm. The total investment for these projects could reach $77 billion, according to Tareq Amin.
- Forming a $10 billion joint venture with AMD to deliver 500 megawatts of AI computing power over five years
- Establishing a $2 billion partnership with Qualcomm to create a chipset design center in Riyadh, employing 500 engineers
By 2030, Humain aims to handle 7% of global AI model training, focusing on both development and deployment capabilities.
In summary, xAI’s interest in Saudi Arabia reflects the Kingdom’s growing ambition to become a central player in the artificial intelligence industry, leveraging significant investment, infrastructure, and partnerships to accelerate growth.
