Saudi Arabia Races Ahead to Build the World’s Cheapest Data Centres

Saudi Arabia is pushing to build the world’s cheapest data centres. The plan is driven by huge supplies of low-cost solar power. The move is part of a national push to support artificial intelligence growth across the country. It also marks a major shift in how the kingdom uses its energy resources.

The effort centers on new AI data hubs backed by state support. According to Reuters and other major outlets, the kingdom wants to use cheap electricity from large solar farms to cut the cost of AI operations. Officials say this is key to Saudi Arabia’s long-term economic goals.

Saudi Arabia Data Centres Powered by Ultra-Cheap Solar Energy

The Al Shuaiba solar farm sits two hours south of Jeddah. It spans roughly 50 square kilometres of desert. It began producing power in 2024 and now delivers 600 megawatts at just over one cent per kilowatt-hour. That is far below many global energy prices.

The cheap electricity is vital for AI inference, which needs both advanced chips and steady power. Industry reports from The Economist and other outlets say electricity is now a major cost in running AI models. Saudi Arabia believes its low rates give it an advantage.

The national push is led by a state-backed company named Humain. It is managed by Tareq Amin under Saudi Arabia’s broader Vision 2030 plan. The aim is to shift the country away from heavy reliance on fossil fuels. Officials say building a strong AI sector is now a top priority.

Humain quickly identified more than 200 possible sites for data centres. These locations offer access to nearly 15.6 gigawatts of energy. Some sites sit next to major solar facilities, which can power new AI campuses at low cost.

The kingdom also secured deals to obtain advanced chips. Reports say it purchased $1.5 billion in Groq chips and later gained approval to import 35,000 Nvidia chips. These chips will support both inference and model development. They also help Saudi Arabia compete with major global tech hubs.

How Cheap Data Centres May Shift the Global AI Map

The rapid build-out could reshape the AI industry. Lower power costs mean cheaper token generation for AI systems. According to global news reports, Humain can already produce AI output tokens at roughly half the market rate. This appeals to firms seeking to cut operating expenses.

Saudi Arabia is also using these systems itself. A new Arabic-language AI model named ALLAM is now deployed across government offices. Adobe and other firms have signed deals to integrate the model into their tools.

Experts say Saudi Arabia could become one of the top global AI hubs within five to seven years. The goal is not only to host data centres but also to build an AI operating system for enterprise use. This system would replace many standard office functions with AI agents.

It is an ambitious plan. But state leaders say they intend to move fast. They call it a long-term shift with no alternative path.

Saudi Arabia data centres may soon become some of the most important AI hubs in the world. The kingdom is betting big on cheap power and rapid expansion. Its push could reshape global tech competition in the years ahead.

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Q1: Why is Saudi Arabia building cheap data centres?

Saudi Arabia is using low-cost solar power to reduce AI operating costs. The goal is to attract global tech firms. It also supports the country’s Vision 2030 plan.

Q2: How cheap is the electricity used for these data centres?

The Al Shuaiba farm produces power at just over one cent per kilowatt-hour. This is far cheaper than most global electricity rates. It makes AI operations much less costly.

Q3: Which chips is Saudi Arabia using?

The kingdom bought Groq inference chips and later secured 35,000 Nvidia chips. These support fast, efficient AI workloads. They help lower the cost of generating AI output tokens.

Q4: What is Humain’s role in the project?

Humain leads the AI data centre strategy. It identifies sites, secures chips, and signs deals with global firms. It works under Saudi Arabia’s Vision 2030 program.

Q5: How will this impact global AI markets?

Cheaper energy may push AI companies to shift operations to Saudi Arabia. It could increase competition across the global data centre industry. It may also lower AI costs for users.