Elon Musk’s xAI secures key data center partnership with Saudi Arabia

Elon Musk’s xAI has struck a major partnership with Saudi Arabia, marking one of its most ambitious international moves yet.

The deal pairs xAI with Humain, a state-backed Saudi company, to build a large-scale data center in the kingdom as Saudi Arabia ramps up its push to become a global artificial-intelligence (AI) hub.

Unveiled during Crown Prince Mohammed bin Salman’s visit to Washington, the project will consume up to 500 megawatts of electricity, making it xAI’s biggest data-center footprint outside the United States.

While neither side disclosed financial details, the agreement aligns closely with Saudi Arabia’s drive to diversify its economy and secure a leading position in advanced technologies.

The announcement comes as the US and Saudi Arabia reached an understanding clearing the way for the kingdom to purchase American semiconductors needed for AI systems, part of a broader package of defense and technology commitments.

On stage in Washington, xAI CEO Elon Musk outlined a future built on robotics, space-based computing, and next-generation AI infrastructure, predicting that humanoid robots could become “the biggest product ever.”

Meanwhile, for xAI, this partnership underscores Musk’s growing global ambitions and signals that the company is accelerating its efforts to keep pace with rivals in the rapidly escalating AI race.