Saudi Arabia's The Line megacity pivots from housing 9 million people to AI data center hub

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Saudi Arabia's ambitious 170-kilometer linear city, The Line, is being drastically scaled down and may be repurposed as an AI data center hub. Crown Prince Mohammed bin Salman's futuristic desert city, originally designed to house 9 million people, now faces a complete redesign amid budget overruns and financial constraints.

The Line Megacity Project Faces Drastic Transformation

Saudi Arabia's ambitious vision for The Line, a futuristic desert city stretching 170 kilometers across the kingdom's landscape, is undergoing a dramatic shift in direction. According to a Financial Times report, Crown Prince Mohammed bin Salman is planning to drastically scale down the project and potentially repurpose it as an AI data center hub

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. The Saudi megacity, once touted as a "cognitive city" that would house 9 million people in just 34 square kilometers while preserving 95% of its land for nature, now appears destined for a completely different purpose as the kingdom pursues its AI ambitions.

Source: Gizmodo

Source: Gizmodo

From Futuristic Urban Vision to AI Infrastructure

The original Neom megacity project featured a polarizing sci-fi design: walls climbing 500 meters in height but just 200 meters in width, with no cars or roads and 100 percent renewable energy production. Residents would supposedly traverse the entire 110-mile length in just 20 minutes via subway

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. Now, sources briefed on the matter indicate The Line will become "a totally different concept" moving forward, with a focus on industry and serving as a major center for AI. The repurposed megacity would leverage its coastal location at the Red Sea for seawater cooling, addressing Saudi Arabia's significant climate challenges for data center operations

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Source: Tom's Hardware

Source: Tom's Hardware

Financial Constraints Drive Strategic Pivot

The drastically scaled down project stems from multiple pressures facing the kingdom. Saudi Arabia is wrestling with tightening liquidity after a decade of massive spending, subdued oil prices, and competing commitments including the Expo trade fair and 2034 World Cup

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. Budget overruns and delays plagued the project from its 2022 groundbreaking, with developers pushing back on outlandish ideas like an upside-down building hanging from a bridge. The CEO overseeing Neom abruptly quit last year, signaling deeper troubles

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. In a statement to Financial Times, Neom acknowledged it is "advancing projects in line with strategic priorities, market readiness and sustainable economic impact," effectively confirming the shift without denying the downscaling.

Saudi Arabia's AI Ambitions Meet Infrastructure Reality

The pivot aligns with Mohammed bin Salman's aggressive push for the kingdom to become a leading player in the AI buildout race. In May 2025, Saudi Arabia received 18,000 AI GPUs from Nvidia for its state-sponsored data centers

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. However, the nation faces a critical obstacle: nearly all of Saudi Arabia's existing data centers operate in zones considered too hot for efficient performance. Of the world's 8,808 operational data centers, nearly 7,000 are built in unsuitable climates, with Saudi Arabia among the worst affected. Unfettered access to the Red Sea could provide a novel solution through seawater cooling systems.

Human Cost of the Failed Vision

The transformation of The Line comes at a steep human price. To secure land for Neom, the Saudi government executed forced evictions, including the execution of three people who refused to vacate their homes. Migrant workers faced slavery-like conditions during construction, with human rights abuses documented throughout the project's development. Reports from human rights groups indicate dozens of workers died and many more sustained serious injuries building what may now become infrastructure for AI systems rather than homes for millions

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. The shift from a city designed for human habitation to one serving computational needs raises questions about the project's original justification and the sacrifices made in its name.

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