Elon Musk’s AI firm, xAI, is in discussion with partners in Saudi Arabia. The company hopes to lease hundreds of megawatts or even gigawatts of data center space. The move aims to boost its compute capacity for training powerful new AI models.
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Two options are on the table. One partner offers several gigawatts in the future. This partner is backed by a Saudi venture named Humain. The other partner can provide around 200 megawatts now. That makes it a faster option for xAI’s immediate needs.
xAI already operates one of the world’s largest supercomputer clusters in Tennessee. However, it needs more space as it works on more complex AI models. The talks in Saudi Arabia show how the company seeks both scale and speed.
Leasing in Saudi Arabia could give xAI access to clean energy and lower operating costs. Many Gulf states aim to support tech growth in AI and cloud infrastructure. xAI might find it easier to expand there than in more regulated regions.
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If xAI strikes a deal, it must win approvals from Saudi and navigate large capital outlays. It also must build or access data center facilities fast. That would help it match rivals like OpenAI and Google in compute capacity.
The talks also signal growing Saudi investment in AI. The country has launched a sovereign project called Humain to support advanced data centers and cloud services. xAI’s interest could prompt more similar deals in the region.
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The deal is still under negotiation and may change. However, it shows how competition to secure AI infrastructure is moving global. For Musk’s company, gaining extra computing power could be key to future breakthroughs.
