Saudi Arabia’s National Infrastructure Fund (Infra) and Humain, the Kingdom’s artificial intelligence company, announced on Wednesday a financing agreement of up to $1.2 billion to support the expansion of AI and digital infrastructure across the country.

Unveiled in Davos, Switzerland, the agreement sets out non-binding financing terms for the development of up to 250 megawatts of AI data-center capacity to support Humain’s customers, according to a statement.

The announcement comes as Saudi Arabia accelerates efforts to build its AI sector amid rising global demand for computing power, as part of a broader strategy to diversify the economy away from hydrocarbons.

Humain, established last year and wholly owned by the Public Investment Fund, is expected to lead the Kingdom’s national AI efforts. The company has signed several agreements, including partnerships with Elon Musk’s xAI and Blackstone-backed AirTrunk for data-center projects in Saudi Arabia. It aims to reach a total capacity of around 6 gigawatts by 2034.

Infra, which operates under Saudi Arabia’s National Development Fund, and Humain also said they would explore the creation of a jointly anchored AI data center investment platform to enable global and local institutional investors to support the expansion of Humain’s AI strategy.