Saudi Arabia's The Line pivots from futuristic desert city to AI data center hub

The Line Abandons Linear City Dream for AI Infrastructure

Saudi Arabia is dramatically scaling back its ambitious Neom megaproject, with The Line set to transform from a futuristic desert city into an AI data center hub, according to a Financial Times report 1

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. Crown Prince Mohammed bin Salman's vision of a 170-kilometer linear city stretching across the desert, designed to house 9 million people, is being "significantly downscaled and redesigned" 3

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. The original concept promised a cognitive city measuring 500 meters in height but just 200 meters in width, featuring no cars or roads and 100 percent renewable energy production 1

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. That vision now appears flagged as overambitious.

Financial Constraints Drive Neom Megaproject Pivot

The dramatic shift follows a comprehensive review that revealed persistent project delays and substantial budget overruns 2

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. 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 the 2034 World Cup 1

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. The kingdom's financial constraints have forced officials to reconsider priorities across multiple megaprojects tied to Saudi Vision 2030, the country's ambitious plan to reduce oil dependency 4

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. By April 2024, planners had already slashed the initial phase to just 2.4 kilometers by 2030, reducing the projected population from 1.5 million to fewer than 300,000 4

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. In a statement to Financial Times, Neom didn't deny the report, stating it was "always looking at how to phase and prioritise our initiatives so that they align with national objectives and create long-term value" 1

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AI Data Center Hub Leverages Red Sea for Seawater Cooling

The revised plan positions The Line as a "totally different concept" focused on industry and as an AI data center hub 1

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. Sources briefed on the matter indicate the coastal city will use seawater cooling from the Red Sea and become "a major center" for AI 1

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. The shift aligns with Crown Prince Mohammed bin Salman's aggressive push for the kingdom to become a leading player in the AI buildout race 1

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. In May 2025, Saudi Arabia received 18,000 AI GPUs from Nvidia for its state-sponsored data centers 1

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. The facilities will likely prioritize high-density server deployments for AI training and inference workloads, potentially utilizing bare metal infrastructure to maximize performance 3

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. The coastal access offers a practical advantage for cloud hosting operations, with one insider telling Financial Times that "data centers need water cooling and this is right on the coast" 4

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Climate Challenges Persist Despite Seawater Solution

Saudi Arabia faces a significant challenge with its hot and dry climate for data center operations. A recent report revealed that nearly 7,000 of the world's 8,808 operational data centers are built in the wrong climate, with Saudi Arabia among nations where nearly all facilities operate in zones considered too hot for efficient operation 1

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. Independent research has identified sustained high temperatures and limited freshwater availability as persistent obstacles 3

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. Unfettered access to the Red Sea could provide a novel solution to this issue through seawater cooling systems 1

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. However, whether the downscaled facility will reach full AI capacity remains unclear, especially given scrutiny faced by similar projects like xAI's Colossus in Memphis, where satellite checks suggested limits in available electricity or cooling capacity 3

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Human Rights Abuses Shadow Project Transformation

The failure of The Line carries a significant human cost beyond financial losses. To secure land for the project, the Saudi government conducted forced evictions and executed three people for refusing to vacate their homes 2

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. Much of the construction has been performed by migrant workers exposed to slavery-like conditions, with reports from human rights groups indicating that dozens have died and many more sustained serious injuries while working on the project 2

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. The transformation from a city meant to house millions to infrastructure supporting AI systems raises questions about the human toll paid for a vision that may never materialize as originally promised. Observers note similar adjustments have already occurred across other Saudi megaprojects, suggesting flexibility rather than firm commitment to original scales or timelines 3

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. The pivot confirms what skeptics have long suspected: the laws of physics and economics have finally breached the walls of the kingdom's futuristic ambitions 4

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