Saudi Arabia is pushing aggressively to secure a stake in the future of the digital and artificial intelligence–driven economy as it seeks to transition from a fossil fuel–led growth model to participation in the digital revolution. A series of ambitious projects are underway, including a planned US$5 billion data centre in northwest Saudi Arabia near the Red Sea. Once operational, the facility is expected to provide sufficient computing capacity to support artificial intelligence development for users as far away as Europe.

For decades, Saudi Arabia has relied on oil exports as the backbone of its economy. Today, it is attempting to pivot towards one of the digital era’s most valuable resources: computing power. Crown Prince Mohammed bin Salman (MBS) is leading this drive to convert the kingdom’s oil wealth into long-term technological influence. Saudi Arabia is exploiting a strategic opening few nations can match, combining cheap energy, vast financial resources, and abundant land—key requirements for operating the large-scale data centres that power modern AI systems.

From Oil To Computing 

American technology firms are firmly within Riyadh’s sights. Executives from OpenAI, Google, Qualcomm, Intel, and Oracle have attended Saudi Arabia’s Future Investment Summits, while the Crown Prince’s visit to the White House last month further reinforced this outreach. In May, MBS launched Humain, an entity designed to become the kingdom’s flagship artificial intelligence platform. Riyadh hopes Humain will eventually handle around six percent of the world’s AI workload, a scale that would place Saudi Arabia alongside both the United States and China in the provision of global computing power.

The kingdom is already developing three major data centre complexes aimed at foreign firms as part of its ambition to become a global AI hub. However, scepticism remains over the feasibility and reliability of these ambitions, particularly as regional competition intensifies. The United Arab Emirates, for instance, has announced a multibillion-dollar AI partnership with OpenAI in Abu Dhabi, leaving Riyadh trailing in a rapidly evolving regional race.

Saudi Arabia’s expanding ties with Beijing further complicate its efforts to collaborate closely with leading American AI firms. Washington remains wary of potential Chinese access to sensitive technologies. While Prince Mohammed has been careful not to openly choose sides in the US–China rivalry, he has sought closer relations with President Donald Trump while continuing to welcome Chinese investment. Saudi Aramco, for example, has publicly highlighted its use of DeepSeek, a Chinese AI firm, at one of its data centres to enhance operational efficiency.

Walking US–China Tightrope

MBS aims to use artificial intelligence to replicate the strategic influence Saudi Arabia once wielded through oil. Humain—often described as an AI-era equivalent of Aramco—is central to this vision. The entity has signed semiconductor supply agreements with Nvidia, AMD, and Qualcomm, as well as a US$5 billion deal with Amazon to build AI infrastructure. To support this expansion, electrical power will be critical, prompting Saudi Arabia to significantly expand its national grid.

Riyadh’s ambition is clear: to emerge as the world’s third major AI epicentre after the United States and China, leveraging its wealth, resources, and top-down strategic direction. Yet the central challenge remains the delicate balancing act between Washington and Beijing. Managing the competing concerns of both powers—particularly over access to advanced chips—represents the most significant risk to Saudi Arabia’s AI ambitions.

President Trump welcomed MBS to the White House with full military honours, a black-tie dinner, and a series of bilateral agreements. During the visit, the Crown Prince pledged up to US$1 trillion in Saudi investment into the United States and secured American commitments spanning defence systems, including F-35 fighter jets, and advanced AI infrastructure. The visit symbolised one of the most striking political rehabilitations in recent global history.

Recasting Of Saudi Power

Once diplomatically isolated, the 40-year-old leader has repositioned himself as a pivotal strategic actor shaping the future of the Middle East and aligning Saudi Arabia more closely with core US interests. With an increasingly unconventional approach to energy policy and an assertive technology-driven investment strategy, Saudi Arabia presents opportunities that Washington finds difficult to ignore.

At the same time, MBS has skilfully leveraged China as a strategic counterweight, signalling that any American hesitation could push Riyadh towards deeper military and technological cooperation with Beijing—an outcome the United States would prefer to avoid. China has already become Saudi Arabia’s largest trading partner, while the United States remains its primary arms supplier and security guarantor.

Nevertheless, Washington remains cautious. Several key agreements remain unresolved, most notably a civilian nuclear deal. The question of whether Saudi Arabia would be permitted to enrich uranium remains a red line for many US lawmakers, who fear it could lay the groundwork for a future weapons programme. A binding defence pact has also yet to be finalised, with no mutual defence clauses currently in place.

Despite these uncertainties, Saudi Arabia’s outlook remains one of confidence and optimism. Anchored by Vision 2030, the kingdom continues to project itself as open for business and committed to diversifying beyond oil. The trajectory is unmistakable: Crown Prince Mohammed bin Salman is not merely back on the global stage—he is reshaping the terms of engagement with major powers and steering Saudi Arabia through the most transformative phase in its modern history.

(The author is a Kuala Lumpur-based strategic and security analyst. Views expressed are personal. He can be contacted at collins@um.edu.my.)