Saudi Arabia Courts Data Center Industry with Open Arms

Americans' growing opposition to data centers has led some tech startups to flee the country in search of more welcoming environments. One such startup is San Francisco-based Together AI, which has partnered with Saudi Arabian AI company Humain to access 250 megawatts of electricity from data centers located inside the Kingdom.

The deal is part of a broader effort by Saudi Arabia to establish itself as an epicenter for the AI industry and expand its investments beyond oil. In May 2025, the Trump administration signed a $600 billion agreement with the Saudi government, through which the latter agreed to spend $20 billion on new data centers within the U.S. in exchange for 'state-of-the-art warfighting equipment and services from over a dozen U.S. defense firms.'

Closing nearly half of Americans (48%) strongly oppose new data centers being built in their area, according to a Gallup poll conducted in March, compared to just 7% who said they 'strongly favor' construction.