Why Saudi Arabia’s $50 Billion ‘The Line’ Megacity Slowed — and How Artificial Intelligence Is Reshaping the Plan
Financial pressures, technical hurdles and a strategic shift toward artificial intelligence are driving a major rethink of the futuristic NEOM city project.
Saudi Arabia’s ambitious linear megacity known as The Line has slowed significantly as the kingdom reassesses its scale, cost and long-term economic role, with artificial intelligence emerging as a central factor in the project’s evolving strategy.
The development forms the centerpiece of NEOM, a vast high-technology region on the Red Sea designed to anchor Saudi Arabia’s Vision 2030 transformation program.
First unveiled as a revolutionary city stretching roughly one hundred and seventy kilometres through the desert, The Line was envisioned as a car-free urban corridor powered by renewable energy and capable of housing millions of residents within two mirrored skyscraper walls rising five hundred metres high.
However, years after its launch, construction has slowed and the plan is being reconsidered.
Rising costs, complex engineering challenges and shifting national priorities have forced a strategic review of the project’s scope.
Internal estimates have suggested that the full development could ultimately cost trillions of dollars, far exceeding initial projections.
Financial pressures have been one major factor.
Saudi Arabia’s sovereign wealth fund, which finances NEOM, has had to balance spending on multiple national priorities including large infrastructure programs and major global events scheduled for the coming decade.
These commitments have led officials to reassess the pace and scale of several megaprojects, including The Line.
Technical complexity has also played a role.
The city was designed as a fully integrated “cognitive” urban environment in which artificial intelligence would manage transport systems, logistics networks, energy distribution and public services.
Building such an advanced digital ecosystem across a massive linear structure has proved far more challenging than planners initially anticipated.
Rather than abandoning the project, Saudi planners are increasingly exploring a shift in its economic purpose.
Parts of the NEOM zone are now being examined as potential hubs for artificial intelligence infrastructure, including large-scale data centres that would support the kingdom’s ambition to become a major global player in AI technology.
This pivot reflects a broader technological strategy.
Saudi Arabia has invested heavily in advanced computing resources and AI hardware in recent years, viewing artificial intelligence as a key pillar of its post-oil economy.
Locating data centres in the NEOM region could offer advantages such as access to renewable energy and seawater cooling from the nearby Red Sea, helping address the enormous power and heat demands of modern AI facilities.
At the same time, officials are examining ways to scale The Line into more manageable construction phases.
Earlier plans envisioned an enormous city capable of housing up to nine million residents, but the revised approach may prioritize smaller initial segments and practical infrastructure that can generate economic activity sooner.
Despite the slowdown, NEOM remains one of the most significant development initiatives in the Middle East and a flagship element of Saudi Arabia’s long-term economic transformation.
The ongoing reassessment is widely seen as an effort to align the bold original vision with financial realities and emerging technological opportunities.
As the review continues, the project appears to be evolving from a purely futuristic urban experiment into a broader innovation and technology hub—one where artificial intelligence could ultimately shape both the infrastructure and the economic future of the region.