In a significant strategic shift, NEOM is transitioning from the ambitious construction of a sprawling futuristic city to the establishment of a global digital powerhouse. This change is marked by the announcement of plans to transform parts of the colossal "The Line" project into a dedicated artificial intelligence (AI) hub.
This decision follows a halt in construction activities in September 2025, after an investment of approximately $50 billion was made. The pause came in light of financial reviews revealing astronomical costs exceeding $8.8 trillion required to complete the original city vision. Instead of continuing down this costly path, investments are now being redirected toward building AI infrastructure, highlighted by a $5 billion partnership with DataVault aimed at developing a data center campus known as the "AI Factory" in the coastal region of Oxsanj along the Red Sea.
The new initiative will leverage the Red Sea's water to provide essential cooling for high-density computing systems in the desert environment, while also striving for emissions-free operations through the use of renewable energy sources. The first phase of the data center is expected to commence operations by 2028, effectively transforming the "The Line" site into a global hub for high-performance computing. This strategic pivot not only reshapes the priorities of one of the largest developmental projects in the world but also positions NEOM at the forefront of technological advancement.
As reported by yemen-press.net.
