Elon Musk’s xAI in Talks to Expand Data Centre Footprint in Saudi Arabia – Bloomberg

Elon Musk’s artificial intelligence startup, xAI, is in talks with data centre operators in Saudi Arabia and the United Arab Emirates to lease computing capacity, as the billionaire seeks to expand in regions offering lower energy costs and more favourable regulatory environments, Bloomberg reported.

In Saudi Arabia, xAI is reportedly considering two potential partners: Humain, backed by the Public Investment Fund (PIF), which has ambitious plans but is still in early stages; and a smaller, unnamed operator already constructing a 200-megawatt facility, according to the report.

Musk’s company, which developed the chatbot Grok as a rival to OpenAI’s ChatGPT, has also held discussions with Abu Dhabi-based AI conglomerate G42 and is evaluating potential data centre projects in Africa. Saudi Arabia is seen as having an edge due to its aggressive investment strategy and access to advanced semiconductor chips.

Securing AI-focused tenants is a strategic priority for both Saudi Arabia and the UAE, as they seek to monetise their digital infrastructure through job creation and increased energy-driven revenues.