XAI in talks to lease data center capacity in Saudi Arabia, Bloomberg News reports
(Reuters) -Elon Musk's xAI is in discussions to lease data center capacity in Saudi Arabia, Bloomberg News reported on Wednesday, as part of an effort to expand its infrastructure in regions offering cheap energy and political goodwill.
The startup is in discussion with two firms: 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.
The Humain proposal remains distant, Bloomberg said, 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.
(Reporting by Juby Babu in Mexico City; Editing by Sahal Muhammed)
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