How Saudi Megacity Neom Is Reshaping Construction Technology

The futuristic US$1.5tn Neom development across Saudi Arabia represents one of the most technologically ambitious construction visions in modern history. While the Arab state's leaders are recalibrating the project's scope due to rising costs and timeline considerations, the technological innovations promise a shift in how cities are built and operated.

At the heart of Neom lies a commitment to emerging technologies that extend far beyond traditional construction methods. From AI-powered supply chains to autonomous freight systems and the world's first fully automated port, the megaproject has become a proving ground for technologies that could define urban development for decades to come.

Strategic technology vision driving development

The birth of Neom is linked to HRH Crown Prince Mohammed bin Salman's Vision 2030, a strategic framework designed to end the Saudi Arabian economy's dependence on oil, according to the Kingdom's official Vision 2030 documentation. Funded primarily by the Public Investment Fund (PIF), Neom is positioned as the "crown jewel" of the Kingdom's Giga-projects.

However, with oil prices fluctuating and the Kingdom managing budget considerations, the original 160 km (100-mile) linear city dream of The Line has been re-evaluated. The revised approach places greater emphasis on high-value technological segments that could offer immediate economic returns, such as digital infrastructure and AI-powered systems.

The scale of Neom has demanded the involvement of major global engineering and construction companies deploying innovative building methodologies. WeBuild of Italy is spearheading the US$5bn dam project at Trojena, while European firms Vinci SA and ACS, alongside regional heavyweights Nesma & Partners and Al Bawani, are heavily involved in backbone infrastructure, including high-speed rail links and underground utility tunnels.

These companies are deploying technologies, including building information modelling (BIM), digital twin simulations and modular prefabrication methods that could accelerate construction timelines while improving quality control.

AI and autonomous logistics infrastructure

One of the most significant developments is the US$10bn logistics joint venture with DSV, established in late 2023 and becoming fully operational in 2024, as reported by industry sources. The partnership, which is 51% Neom and 49% DSV, is responsible for end-to-end supply chain management of the entire region using advanced technological systems.

The joint venture is currently developing an innovation centre at Oxagon to pioneer autonomous freight and carbon-neutral last-mile delivery systems. For global suppliers, the Neom Supplier Portal has become a critical gateway, with the project seeking partners who can adhere to circular economy principles and integrate advanced tracking and management systems.

Recognising the global demand for compute power, the PIF has unveiled HUMAIN, a venture focused on transforming sections of Neom into a global hub for data centres and AI research. This strategic pivot positions Neom as a technological powerhouse beyond its architectural ambitions.

Advanced infrastructure projects

The major Neom projects are at varying stages. Sindalah, the luxury island destination, is the most mature, having officially opened its doors to the global yachting community. Trojena's construction remains intensive as the site prepares for the 2029 Asian Winter Games, according to project timelines. The Line's focus is currently on the first 2.4 km "starter" segment, which serves as a proof-of-concept for high-density, car-free living enabled by smart city technologies.

Two projects stand out for their technical complexity. The Oxagon Port is set to be the world's first fully automated port with integrated supply chain systems. It is the site of the Neom Green Hydrogen Company, which aims to be the world's largest utility-scale green hydrogen plant, representing a significant technological leap in clean energy production.

Beyond the headline projects, Neom's infrastructure programme encompasses a vast network of underground utilities, smart grid systems and telecommunications networks designed to support the region's ambitious technological vision. These foundational elements incorporate sensors and monitoring systems that enable real-time data collection and predictive maintenance, creating what developers describe as a "living infrastructure" that can adapt to changing demands and optimise resource allocation autonomously.

Retail in Neom is shifting towards integrated experiential hubs powered by technology. In the mountain resort of Trojena, retail spaces are designed to blend into the landscape while incorporating advanced systems. Retailers are testing frictionless shopping experiences powered by AI, where biometrics and computer vision replace traditional checkouts, potentially demonstrating the future of automated commerce at scale.