Saudi Arabia’s Ambition to Host the World’s Cheapest Data Centres

Saudi Arabia is pushing a bold strategy to become home to some of the cheapest data centres on the planet by using its abundant and ultra low-cost energy resources. The plan is part of a wider shift in the Kingdom’s economic direction that looks beyond oil and toward digital infrastructure, artificial intelligence, and global tech competitiveness.

At the heart of this strategy are extremely low electricity costs created by large solar farms such as the Al Shuaiba plant near Jeddah. This facility already produces hundreds of megawatts of solar power at electricity prices far below most major global markets. Because energy costs are one of the largest expenses in running AI and cloud systems, Saudi Arabia believes it can attract major data centre operators by offering the cheapest power available anywhere.

A state-backed company known as Humain is central to this effort. The firm has identified hundreds of potential data centre sites across the country with access to gigawatts of power. Early infrastructure deals include agreements with international chip suppliers and partnerships with global builders, all aimed at scaling capacity quickly. Saudi Arabia has also secured licences to import cutting-edge AI chips as part of these data centre plans.

The push for cheap, large-scale data infrastructure fits within Saudi Vision 2030, a national plan designed to diversify the economy and reduce dependence on fossil fuels by investing in technology, innovation, and digital services. Establishing a competitive position in global AI and cloud computing ecosystems is seen as a key part of that vision.

Beyond state initiatives, private and joint-venture projects are also moving forward. Saudi Telecom Company and AI-focused Humain have formalised a joint venture to develop and operate AI data centres with significant power capacity. Other investments from local and international firms add momentum to the Kingdom’s expanding digital infrastructure market.

Analysts note that if Saudi Arabia can successfully host cost-competitive data centres at scale, it could reshape the global AI and cloud infrastructure landscape. Lower power costs would make it attractive for AI model training and deployment, and help draw global tech players seeking new regions for growth.

Saudi Arabia’s ambition to host the world’s cheapest data centres reflects a larger effort to build a diversified post-oil economy rooted in digital leadership, innovation, and long-term investment in emerging technologies.