The Neom project, launched by Crown Prince Mohammed bin Salman about eight years ago, was envisioned as an ambitious futuristic city on the Red Sea coast in Saudi Arabia. The area of this megacity, comparable to Belgium, was supposed to include the 'lying skyscraper' The Line, which was planned to be built 170 kilometers long, 500 meters high, and 200 meters wide, to accommodate millions of residents. However, as practice shows, the implementation of this grand idea has faced serious problems.
After years of delays, budget overruns, and a lack of expected foreign investments, the leadership of Saudi Arabia has decided to revise the Neom concept. The main goal of this revision is to optimize costs and implement more realistic plans. Updated proposals are expected to be ready by the end of the first quarter of 2026 or shortly thereafter.
Among the changes planned for the 'lying skyscraper' is a significant reduction in its scale. The fate of the Trojena ski resort, originally planned as a venue for the 2029 Asian Winter Games, is also in question. Its future is now unclear, and its capabilities will be reassessed. The main task of the Neom revision is to focus on more sustainable and realistic directions, such as creating data centers and artificial intelligence hubs, using the existing infrastructure.
One of the arguments for using the project for AI and data processing tasks is the availability of a large volume of seawater. It can be used for cooling data centers, although desalination and purification will be required, which may lead to high operational costs. At the same time, the region has an excess of solar energy, which will make the energy supply for data centers more environmentally friendly.
It was previously reported that the Neom project became the largest consumer of concrete in the world during the construction phase of The Line's foundation. Reducing or halting further construction will negatively impact the concrete manufacturing industry, which could cause problems in the economies of many countries, given the global dependence on this resource. This, although not the main topic of our publication, could affect the electronics market, as was the case during the payment crisis caused by the construction crisis in the U.S. over a decade ago.
Nevertheless, there are positive aspects as well. The Neom project, which anticipated significant climate changes in the region, may now not negatively impact the ecosystem, creating better conditions for inhabitants such as scorpions, lizards, and cormorants.
