Saudi Arabia's Desert Metropolis Project, Neom, Unveils Plans for a $5 Billion Artificial Intelligence Data Center
In today's digital age, some might say that data is the new oil. And if that's the case, then Saudi Arabia, the oil kings of the past, are aiming to become the data kings of the present. The Saudi Arabian crown jewels have announced a new $5 billion AI data center project, which is allegedly part of the Neom urban development effort, a colossal, multi-trillion dollar scheme along the Saudi Arabian coast.
The data center deal, announced last Tuesday between Neom and sustainable data center developer, DataVolt, is said to signal a significant step towards realizing Saudi Arabia's vision of a data-driven economy. Supposedly, this investment will introduce new energy-efficient methods of data consumption. Let's hope that dream becomes a reality!
The new data center will be constructed in Neom's "Oxagon" region, a "floating" industrial port city by the Red Sea coast. It will incorporate compute densities and energy-efficient architectures to tackle the global challenges posed by traditional data centers, according to the press release.
"This agreement with Neom and Oxagon underscores our unwavering commitment to supporting the Kingdom’s vision of becoming a regional digital and AI hub," said Rajit Nanda, CEO of DataVolt. "The Kingdom’s strategic location, coupled with its abundant green energy resources, aligns perfectly with DataVolt’s mission in providing state-of-the-art sustainable data centers."
Saudi Arabia's interest in becoming a prominent artificial intelligence investor is no secret. The country has forged connections with leading American AI companies and last year, announced a new $40 billion fund aimed at various AI projects. Saudi Arabia's neighbor, the United Arab Emirates, is also well-known for being one of the largest donors to the newly announced Silicon Valley project to construct AI data centers across the US.
Neom's progress has not always been smooth sailing. Despite the lofty ambitions initially surrounding the project, Saudi Arabia has been consistently scaling back its plans, leading some to question whether the original vision will ever come to fruition. In November, Neom's longtime CEO abruptly stepped away from the project without explanation.
As with other things associated with Saudi Arabia, human rights concerns loom ominously over Neom. A report from the British public broadcasting network ITV claimed that over 21,000 migrant construction workers have died in Saudi Arabia since 2017. Human Rights Watch has also reported widespread labor abuses in the construction of empire-building projects in the Kingdom. Saudi Arabia denies these reports as misinformation.
The AI data center project represents a significant step towards Saudi Arabia's technological advancements and economic growth. The country has made substantial investments in digital infrastructure, backed by prominent companies like Google Cloud, Groq, SambaNova, Salesforce, and Tencent Cloud. These investments aim to develop advanced technology, boost the digital economy, and attract foreign investment.
However, these advancements come with controversy surrounding human rights. The Saudi Public Investment Fund (PIF) has been linked to damning human rights violations, such as the use of an airline owned by the PIF in the killing of journalist Jamal Khashoggi. Additional concerns surround the lack of oversight, including the role of the Committee on Foreign Investment in the United States (CFIUS) in evaluating the PIF's US deals.
AI technologies also raise significant human rights concerns in Middle Eastern countries. They are commonly used for mass surveillance, biometric data collection, and predictive analytics, often targeting marginalized communities and activists. The use of these technologies to suppress popular mobilization and reinforce authoritarian control raises serious ethical questions.
In conclusion, the Saudi Arabian AI data center project represents both technological progress and human rights concerns. The country's ambitious ventures in artificial intelligence and digital infrastructure have significant economic implications, but the impact on human rights is a pressing concern that requires urgent attention.
The $5 billion AI data center project in Neom is a testament to Saudi Arabia's ambitions in becoming a leading artificial-intelligence investor and a digital hub. This tech-focused endeavor will undoubtedly shape the future of the region's technology sector.
With the new AI data center and its commitment to sustainable data consumption, Saudi Arabia is leveraging technology to tackle global challenges posed by traditional data centers and contribute to the development of advanced technology, boosting its digital economy.
