Saudi Arabia to repurpose Neom “line city” into AI data center

Saudi Arabia is revising its ambitious Neom project, originally envisioned as a futuristic “line city” for 9 million residents, and may convert it into a large-scale artificial intelligence data center.

According to the Financial Times, internal audits showed the project could take up to 55 years to complete and cost $8.8 trillion - around 25 times the country’s annual budget. The original plan called for a 170-kilometer-long structure, 500 meters high and 200 meters wide, housing millions of people on a limited footprint.

Facing delays, cost overruns, and competing priorities - including preparations for major international events such as Expo and the 2034 FIFA World Cup - Saudi authorities have scaled back the project.

Sources cited by the Financial Times say Crown Prince Mohammed bin Salman is now considering turning “The Line” into an AI-focused data processing hub. The facility would support Saudi Arabia’s national AI strategy. In May 2025, the kingdom received 18,000 Nvidia GPUs for government computing centers.

Neom representatives told the Financial Times that the project’s priorities are “under constant review” and aligned with economic feasibility and strategic goals.

The site’s proximity to the Red Sea could also help reduce cooling costs, as seawater may be used to cool data center infrastructure in the region’s extreme heat.