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Saudi Arabia accelerates AI ambitions with xAI expansion, NVIDIA mega factory

• By Anjum Khan
Saudi Arabia accelerates AI ambitions with xAI expansion, NVIDIA mega factory

Saudi Arabia is stepping up its push to become a global artificial intelligence hub, with the Kingdom announcing major investments involving xAI and NVIDIA as it seeks to accelerate its digital transformation under Vision 2030.

The announcements were made by Minister of Communications and Information Technology Abdullah Alswaha during the opening of LEAP 26 in Riyadh. The minister said xAI, the artificial intelligence company founded by Elon Musk, will establish its first expansion outside the United States in Saudi Arabia.

The project will initially have a capacity of 50 megawatts, with plans to scale it to 500 megawatts in subsequent phases. The expansion is expected to add to Saudi Arabia’s growing AI infrastructure as demand for computing capacity increases globally.

Alswaha also highlighted NVIDIA’s plans to establish one of the world’s largest artificial intelligence factories in the Kingdom. He described the project as one of the 'crown jewels' of the Saudi economy and said it reflects the country’s ambition to position itself as a global centre for AI.

The announcements come as Saudi Arabia seeks to build out the infrastructure, investment ecosystem and digital capabilities needed to support wider AI adoption. The minister said the Kingdom’s digital economy has grown by 70%, describing it as the largest and fastest-growing in the region.

Alswaha also pointed to the growing participation of women in the technology sector, saying women now account for 36% of the sector’s workforce, placing Saudi Arabia first among G20 countries on the measure cited by the minister.

He said Saudi Arabia would continue working with international partners to accelerate technological transformation and AI adoption while supporting the objectives of Vision 2030.

LEAP 26 is bringing together more than 1,000 international speakers and experts, over 1,800 technology companies, more than 600 startups and more than 1,900 investors and venture capital representatives.

The event is showcasing developments across AI, cloud infrastructure, data, cybersecurity, fintech, health technology, smart cities, energy, climate technology, space, gaming, sports technology and digital commerce, reinforcing Saudi Arabia’s broader push to expand its position in the global technology economy.