Nvidia plans AI factories in Saudi Arabia amid global expansion

Saudi Arabia is rapidly transforming into a global AI powerhouse through massive investments and strategic partnerships with the world’s leading tech giants. These collaborations, totaling over $35 billion, aim to establish the kingdom as a central hub for AI development while addressing the dual challenges of building advanced computing infrastructure and developing region-specific AI capabilities. The initiatives represent a significant shift in global AI investment patterns, with Saudi Arabia leveraging its financial resources to secure partnerships that promise substantial economic returns and technological sovereignty.

The big picture: Saudi Arabia is orchestrating a coordinated AI investment strategy worth billions through partnerships with major tech companies including Nvidia, Google, AWS, and Supermicro.

• DataVolt and Supermicro have signed a $20 billion deal to build GPU-powered AI campuses that pair renewable energy with advanced server technology.
• The Saudi Public Investment Fund (PIF), through its subsidiary Humain, is partnering with Nvidia to build AI factories with 500 megawatts capacity, including an 18,000-unit Nvidia GB300 Grace Blackwell AI supercomputer.
• Google Cloud and PIF are investing $10 billion in a global AI hub expected to generate $35 billion in economic benefits for the US.

Key infrastructure developments: The kingdom is creating specialized AI zones and facilities that will serve as both computational powerhouses and innovation centers.

• AWS is investing over $5 billion in a dedicated AI Zone featuring its infrastructure and services.
• The Nvidia partnership focuses on developing sovereign AI models, digital twins, and robotics capabilities.
• These facilities will be powered by renewable energy, addressing the enormous power requirements of AI computing.

Regional impact: The investments extend beyond hardware to include significant workforce development and Arabic language AI capabilities.

• AWS plans to train 100,000 Saudi citizens in cloud computing and AI technologies.
• Development of Arabic Large Language Models (ALLaM) is a priority, addressing a significant gap in current AI systems.
• Cisco, Salesforce, and Qualcomm are expanding their Middle East AI partnerships, with Salesforce committing $500 million to Saudi operations.

Why this matters: These partnerships represent a strategic pivot for Saudi Arabia’s economic diversification while giving tech companies access to substantial capital and a regional development hub.

• The investments align with Saudi Arabia’s Vision 2030 plan to reduce dependence on oil revenues.
• For tech companies, the partnerships provide both funding and a strategic foothold in the Middle East market.
• The focus on sovereign AI models suggests Saudi Arabia aims to develop technological independence while becoming a key player in the global AI landscape.