Saudi Arabia Scales Back Neom’s The Line Mega‑Project

Neom’s Vision Pulled Back as Costs and Delays Mount

Saudi Arabia is reassessing the scope of its $500bn Neom development, with its flagship component, The Line, facing substantial scaling back. Originally unveiled as a 170km linear city formed by twin skyscrapers taller than the Empire State Building, The Line was intended to embody a new model of urban living. However, concerns over feasibility, construction complexity and rapidly rising costs since the project’s 2017 launch have led officials to reconsider how much of the vision can realistically be delivered.

The re‑evaluation comes against a more challenging fiscal backdrop. Declining oil prices, heavy spending commitments linked to the 2030 Expo and the 2034 FIFA World Cup, and tightening domestic liquidity have all intensified scrutiny of Neom’s budget. Within this context, the government has moved to curtail near‑term ambitions for The Line while exploring alternative uses that better align with national priorities and available resources.

One of the key technical obstacles has been the proposed height of the structures, originally set at around 1,640 feet. Construction difficulties at this scale prompted suggestions to reduce the towers to 1,000 feet as a cost‑saving measure. Prime Minister Mohammed bin Salman rejected that specific compromise, instead directing officials to seek other ways to contain costs, contributing to the current strategic rethink of the project’s overall form and function.

From Linear City to Potential AI Data Centre Hub

As part of the revision process, Saudi officials are considering converting The Line into a large‑scale data centre hub designed to underpin the kingdom’s ambitions in artificial intelligence. While no final decision has been reported, this potential pivot would move the development away from its original focus on residential and mixed‑use urban space toward digital infrastructure supporting AI training and inference.

The contemplated shift is tied directly to the global surge in demand for high‑capacity data facilities and computing power required by advanced AI models. Repurposing portions of The Line’s footprint for data centres is viewed as a way to leverage the existing investment in planning and early works while aligning the project more closely with Saudi Arabia’s broader technology and economic diversification strategies.

The change in direction would also reflect a more modest physical build‑out than initially proposed. After repeated delays and budget overruns, the original target of completing 16km of The Line by 2030 was first reduced to 2.4km. Current expectations now suggest that by 2034 only a half‑mile stretch, including a stadium, is likely to be finished, underscoring the extent of the scale‑back under consideration.

Environmental Concerns Gain Higher Priority

Alongside financial and technical challenges, Neom is facing mounting environmental scrutiny. Donald Wuebbles of the University of Illinois, an atmospheric adviser to Neom, has publicly questioned the project’s potential impact on regional climate and weather systems. He highlighted that these issues had not been sufficiently studied in the project’s early phases, prompting concerns over unintended consequences.

In response, Neom’s sustainability advisory committee recently elevated environmental risks to a higher priority, according to Wuebbles. This internal shift indicates that climate and ecological impacts are now more central to the decision‑making process as the project evolves. How these concerns are reconciled with the planned data centre focus, which typically carries high energy and cooling demands, remains an important question for the project’s next phase.

The increased attention to environmental factors comes as Saudi Arabia seeks to position Neom as both a showcase of futuristic development and a contributor to long‑term national sustainability goals. Balancing those objectives with the realities of large‑scale construction in a sensitive desert and coastal environment is now a visible part of the strategic reassessment.

Ongoing Work on The Line’s First Phase

Despite the reassessment, planning and engineering work for the initial phase of The Line is continuing. In November 2024, Neom announced new partnerships focusing on the first segment of the project. Delugan Meissl Associated Architects was appointed for urban design and master planning, with Gensler engaged on city planning and asset design. Infrastructure engineering for this phase is being handled by Mott MacDonald.

These firms are coordinating on microclimate analysis, mobility logistics, land use frameworks and core infrastructure systems. Their mandate covers refining how The Line’s first built sections will function under the revised scope, whether as part of a reduced linear city, a data centre hub, or a hybrid configuration. This technical work is expected to inform the government’s final decisions on the project’s long‑term direction and investment profile.