Tuesday, 02 January 2024 12:17 GMT

Saudi AI Infrastructure Giants Unite For Multi-Gigawatt Data Hub


(MENAFN- The Arabian Post)

Saudi Arabia's two leading technology infrastructure firms, HUMAIN and DataVolt, have entered a strategic partnership aimed at creating a multi-gigawatt-scale data-centre pipeline designed to support high-intensity artificial-intelligence workloads within the Kingdom. The alliance seeks to mobilise capacity on a scale rarely seen in the Middle East and forms a significant step in the country's broader ambition to become a global AI hub.

HUMAIN, a state-backed AI company launched under the auspices of the Public Investment Fund and chaired by the Crown Prince, has already committed to building some 6 gigawatts of data-centre capacity for AI infrastructure. A Reuters report noted that the company is planning build-out of approximately 6 gigawatts of data-centre capacity. Meanwhile DataVolt has secured agreements for projects such as a 1.5-gigawatt net-zero“AI factory” campus in the Oxagon zone with NEOM and a separate AI-ready facility in Riyadh on land leased from the Saudi Authority for Industrial Cities and Technology Zones. The newly announced cooperation puts HUMAIN and DataVolt jointly seeking to populate major AI workloads by deploying large-scale computing and data-centre infrastructure.

HUMAIN's AI ecosystem spans a full-stack offering: sovereign cloud, data-centre hardware, AI model development and new operating-system builds. The company has struck deals for advanced chips from major U. S. vendors, including an initial shipment of 18,000 high-end processors from Nvidia, and a broader multibillion-dollar collaboration with AMD. DataVolt has meanwhile entered a US$20 billion agreement with server-hardware vendor Supermicro to accelerate liquid-cooled GPU infrastructure for its Saudi and U. S. campuses. The synergy between HUMAIN's end-to-end AI stack and DataVolt's infrastructural build-out is emerging as a core element of the Kingdom's push into compute-intensive workloads.

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Cheap and controllable power remains a central attraction for the Kingdom. Analysts note that Saudi Arabia's ability to offer below-global-average electricity tariffs and tightly regulated grid policies provides a competitive edge in the cost-sensitive AI-data-centre market. One industry commentary observes that“Saudi Arabia has one real comparative advantage for AI: cheap electricity.” The scale of the ambition is underscored by project figures: for example, DataVolt's agreement for a net-zero 1.5 GW facility at NEOM.

Yet the scale of these projects comes with significant execution risk. The data-centre industry globally is already facing demand constraints, skilled-labour shortages and supply-chain headwinds. Saudi builds must contend with local grid expansion needs, advanced cooling systems suitable for desert climates, and the challenge of sourcing top-tier semiconductors amid geopolitical export controls. One analyst cautioned that while the energy math may favour siting in Saudi Arabia,“you might build elsewhere” from many other perspectives. Moreover, sustainability concerns around water use, cooling and desert-site infrastructure will attract scrutiny as the projects advance.

From the business-model standpoint, the HUMAIN-DataVolt tie-up illustrates a broader shift: moving from building cloud and data-centre infrastructure to“compute factories” designed for training and inference of generative-AI and large-language-models. Project figures for hyperscale campuses are entering the gigawatt range, with metrics usually associated with heavy industry more than traditional data centres. For enterprises and cloud providers considering latency-sensitive and sovereign-cloud workloads, the Saudi offering presents both a cost-advantaged and strategically significant region. Data-localisation mandates, state backing and the promise of bundled renewable-energy support enhance the appeal.

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The Arabian Post

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