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$1.5 TRILLION WASTED? Saudi’s Futuristic NEOM City Is Now Just… AI Servers

NEOM's The Line — the futuristic 170 km (105-mile) mirrored megacity in Saudi Arabia's desert, promising zero cars, zero emissions, robot butlers, and 9 million residents — is undergoing massive scaling back in early 2026. Original $500B+ Vision 2030 flagship now faces reality: slashed to a fraction (reports of ~2.4 km / 1.5 miles initial phase), Trojena ski resort's 2029 Asian Winter Games postponed indefinitely, and potential pivot to AI data center hub using seawater cooling and renewable energy advantages.
Why the crash? Low oil prices (~$60/barrel vs. $90 break-even), massive deficits, $50B+ already spent with little to show (expensive trench + delayed over-budget resorts), engineering nightmares (heat islands from mirrors, desert logistics), leadership shakeup (CEO Nadhmi al-Nasr replaced by Aiman al-Mudaifer in late 2024 after Sindalah flop), and reprioritization toward locked-in events like Expo 2030 and 2034 FIFA World Cup.
Human cost: Forced displacements of Howeitat tribe, arrests, and a reported activist killing in 2020 for land acquisition.
Failure or smart pivot? Original sci-fi dream delayed or dead, but AI servers could make it profitable and realistic. Review wrapping Q1 2026 — what comes next?

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