#XAI In Talks To Lease Data center capacity in Saudi Arabia, Bloomberg News reports

By Reuters

July 16, 20259:12 PM GMT+5Updated 12 hours ago

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The xAI logo is seen in this illustration taken on February 16, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

July 16 (Reuters) - Elon Musk's xAI is in discussions to lease data center capacity in Saudi Arabia, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The startup is in discussion with two potential partners: Humain, a Saudi-backed AI company offering xAI several gigawatts of capacity, and another company building a smaller but more immediately available 200-megawatt facility, according to the report.

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The Humain proposal remains distant, Bloomberg reported, as the startup launched by Saudi Arabia's sovereign wealth fund is yet to break ground on much of the infrastructure it has pledged to build.

The other company, which Bloomberg did not name, is already working on the 200-megawatt facility, making it a more realistic short-term option for xAI, the report said.

XAI and Humain did not immediately respond to Reuters' requests for comment.

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