The Game-Changer: Data Centres Powered by Saudi Oil Money

Imagine data centres so massive they dwarf anything built before. That's what's happening in Saudi Arabia right now. The kingdom discovered a simple advantage: electricity costs 30-50% less than anywhere else globally, thanks to abundant oil and solar power, according to Saudi business leaders cited by The New York Times. Combine that with Saudi Arabia's approximately $1 trillion sovereign wealth fund backing their AI ventures through the Public Investment Fund, and you've got the world's newest AI powerhouse.​

Elon Musk's xAI is building a 500-megawatt data centre there, and Amazon Web Services is deploying 150,000 AI accelerators. Humain, the Saudi Arabia-backed AI company responsible for coordinating many AI initiatives, is planning to build 6.6 gigawatts of computing capacity by 2034—enough to power millions of homes if directed at electricity instead of AI, based on statements from Humain officials and data centre analysts.​

Which Stocks Actually Benefit?

The semiconductor winners: Nvidia, AMD, and Qualcomm are the real beneficiaries here. These chips power everything Saudi Arabia is building. Nvidia's position is particularly strong. It's the chip provider of choice for Humain's massive facilities, according to sources including Bloomberg and CNBC.​ Don’t overlook oil stocks. Saudi Aramco just signed over $30 billion in deals with U.S. companies, reported by Middle East Eye and AA News Agency.

However, Saudi Arabia isn't abandoning oil for AI. It's doing both simultaneously. By pairing massive energy sector partnerships with cutting-edge data centre buildouts, the kingdom reduces its economic risk, reported by Reuters and confirmed during the U.S.-Saudi Investment Forum. For you, that means traditional energy stocks have renewed momentum alongside the promising AI infrastructure plays.​

The Chip Export Question

Here lies a key execution risk. Saudi Arabia wants tens of thousands of advanced AI chips, the kind the U.S. normally restricts to select allies. The Trump administration, as reported by Bloomberg on November 18, is preparing to approve these sales to Humain. However, as of November 18, no formal green light had been granted, which means delays or denials could stall the entire timeline.​

What to Watch

When will those AI chip exports get approved? When do construction projects break ground? Real-world progress matters infinitely more than press releases. Crown Prince bin Salman’s visit signals a removal of geopolitical isolation after years of tension. Investors who had priced in “Saudi Arabia risk” just got a gift, as noted by analysts in The New York Times. That risk premium evaporates when relations normalize. However, don’t mistake announcements for deployments. $1 trillion sounds massive, but it’s spread over years. Focus on actual spending, not headlines.​