Two potential partners identified
Elon Musk's xAI could open a new data center in Saudi Arabia.
According to a report from Bloomberg, Musk's firm, which makes the Grok chatbot, has held discussions with two potential partners in the Middle East.
xAI would look to lease space, rather than build its own data centers, the report said, citing lower energy prices and favorable political conditions as reasons for the move.
One of the potential partners is Humain, the AI venture set up earlier this year and backed by Saudi Arabia's sovereign wealth fund, which is aiming to deliver 6.6GW of data center capacity over the next decade.
The other potential partner was not named by Bloomberg, but is said to have a 200MW data center under construction.
xAI already owns and operates a data center in Memphis, Tennessee, and is planning a second facility in the city.