Saudi Arabia's $500 Billion Megacity Neom Could Be Turned Into AI Data Centre Hub: Report

Saudi Arabian Crown Prince Mohammed bin Salman's (MBS) ambitious project, Neom, is set to be significantly downscaled. The Line, its centrepiece, which was envisioned as a futuristic city stretching 170 kilometres across the desert, housed within two parallel skyscrapers taller than the Empire State Building, could be converted into a hub for data centres as the kingdom aims to become a leading artificial intelligence (AI) player.

Neom was meant to redefine urban living, with MBS comparing it to the Egyptian pyramids. However, the slow progress and rising costs have raised doubts about the feasibility of the project and its future.

According to a report in the Financial Times, the kingdom is wrestling with "tightening liquidity after a decade of massive spending," and "subdued" oil prices, as well as other expensive projects like the 2030 Expo international trade fair and the 2034 FIFA World Cup.

“The Line will be a totally different concept. It will use the existing infrastructure in a totally different manner,” one of the individuals associated with the project told the outlet.

Ever since it was announced in 2017, the project has been facing delays and surging costs owing to its grand scale, which most experts have dubbed unrealistic. The original plan to build 16 km of The Line by 2030 was highly ambitious and had to be later revised down to 2.4 km, with only a half-mile section, including a stadium, expected by 2034.

The Line's 1,640-foot height makes construction difficult, and Neom officials suggested lowering it to 1,000 feet to cut costs. MBS, however, rejected this, insisting on finding savings elsewhere.

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Neom Impacting the Environment

Last year, Donald Wuebbles, a University of Illinois professor of atmospheric science, who serves as a paid adviser to Neom, stated that the $500 billion project and its lofty architectural plans could destabilise the region's environment.

"Part of my concern was, what impact is The Line and those [projects] going to have on the local environment. You start affecting the local weather and climate," said Wuebbles.

Wuebbles said he repeatedly raised the issue about the linear city changing the environment and weather systems, as the damaging effects have "not been studied enough". He added that the sustainability advisory committee was informed at a recent meeting that the issue had been escalated to a "higher priority".