In their promised land... ...we will build a new mako-powered metropolis.President Shinra
Neo Midgar is a plan for a model city to be built by the Shinra Electric Power Company in the Final Fantasy VII series. Neo Midgar is President Shinra's vision to build a new metropolis of Midgar in the legendary Promised Land, and make it an improved city based upon the present design as allowed by the excess of mako energy he believes is to be found there. Shinra plans to relocate their center of operations to the new city. Especially shown in the Final Fantasy VII Remake, Shinra uses the promise of building a utopia to garner support for the company and their process of mako harvest from the general public.
The Promised Land is a legendary location mentioned in Cetra records, which Shinra believes to be a fertile land full of endless mako. To find the Promised Land, Shinra funds scientific research into Cetra, even going so far as trying to create one themselves. Neo Midgar is never built, even after the new company president, Rufus Shinra, discovers what he deems to be the Promised Land in the North Crater, as the company falls apart in the Weapon crisis.
Neo is a prefix from the ancient Greek word for "new" or "young".