“Artificial intelligence is the new electricity.” - Andrew Ng, AI educator
From oil wealth to data power
Saudi Arabia, long synonymous with oil, now wants to be a major AI player too. Near the Red Sea, the kingdom is building a $5 billion data center to power global AI ambitions, while additional tech hubs across the country aim to make it a regional computing superpower.
A digital transformation strategy
Crown Prince Mohammed bin Salman (MbS) envisions transforming Saudi Arabia’s oil wealth into technological influence. Through its Future Investment Initiative, the country is courting global giants like OpenAI, Google, Microsoft, and xAI to use its data infrastructure. The startup Humain, backed by the Saudi government, plans to handle around 6% of the world’s AI workload in coming years.
Building a new kind of export
Instead of crude oil, Saudi Arabia now wants to export computing capacity, one of the most coveted resources of the digital age. Its abundant and cheap energy supply makes it appealing to AI firms that need large-scale processing power. The proposed “data embassy zones” would also help foreign companies operate under their own national laws.
Geopolitical and ethical challenges
Skepticism abounds over KSA's human rights record and political ambitions. The U.S. and China are already competing for AI chip influence, and Saudi Arabia’s partnerships with both sides may invite new strategic tensions. Critics caution that transforming from an oil exporter to a digital leader requires more than just infrastructure; it demands trust and openness.
A race for AI leadership
While the UAE, with its partnership with OpenAI, has taken an early lead, Saudi Arabia is determined not to be left behind. It views AI not only as an economic opportunity but also as a soft power tool to extend its global influence beyond energy.
Summary
Saudi Arabia is repurposing its oil wealth to build massive AI data centers and attract global tech collaborations. Its aim is to become an exporter of computing power instead of crude oil, but success depends on balancing geopolitical interests, technological credibility, and ethical accountability.
Food for thought
Can a country with an oil-based legacy truly lead the world in a technology built on transparency, innovation, and global trust?
AI concept to learn: Computing Power
Computing power refers to the processing capability of computer systems to perform complex calculations and run AI models. In AI, vast computing power is essential for training algorithms, running data-intensive applications, and enabling breakthroughs in machine learning and neural networks.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
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