Saudi Arabia’s The Line is shrinking as the megaproject pivots to high-tech AI servers amid rising costs and desert challenges.
- Saudi Arabia may change residency programs to focus on industries and AI
- The desert nation is investing heavily in GPUs at government-backed AI institutes
- Access to the coast provides potential seawater cooling for desert data centers
Saudi Arabia’s Neom project, known as “The Line”, was originally described as a line of urban development stretching about 170km across the desert.
The concept envisioned a linear city with extreme density, automated mobility, and renewable energy that would house 9 million residents in its small area.
However, reports now suggest officials are reconsidering the idea after an internal review revealed delays, cost overruns, and wider financial pressures – and sources cited Financial Times they say the revised system may abandon large residential ambitions in favor of smaller industries.
Focus on AI infrastructure and data centers
In this context, the planners are reportedly considering the site as a place to host clouds and large data centers designed to support a heavy computing load.
It will likely prioritize deploying denser servers for AI training and interpretation, rather than housing or urban infrastructure.
Some accounts suggest that operators may opt for bare metal infrastructure to increase efficiency and effectiveness.
Saudi Arabia has recently accelerated investment in AI capacity, including the acquisition of thousands of advanced GPUs in state-backed institutions.
However, Saudi Arabia’s climate poses a documented challenge to data center operations, especially given the consistently high temperatures and limited availability of fresh water.
An independent study identified the country as one where the majority of existing data centers operate in areas considered to be inefficient in cooling.
But access to the coast of The Line in the Red Sea offers a practical advantage, as planners propose cooling the seawater as a mitigation measure.
Similar projects, such as xAI’s Colossus in Memphis, have faced scrutiny after satellite tests raised limits on available gas or cooling capacity for AI systems.
Whether the scaled-down data center will reach full capacity is not yet clear, but Saudi Arabia has opted to pause Line in favor of a smaller system.
The desert country has faced economic hardship after years of public spending, with low oil revenues and competing commitments such as the Expo trade fair and the 2034 World Cup adding to the pressure.
Neom did not directly dispute the claims of reduced space, instead emphasizing the development of sections and alignment with national priorities.
This approach suggests flexibility rather than a rigid commitment to an initial scale or timeline.
Observers note that similar changes have already taken place in all major Saudi projects.
But without clear confirmation of the original plan, speculation has grown that the linear city model may no longer be at the center of Neom’s near-term strategy.
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