NEOM partners with DataVolt to develop a sustainable AI factory in Oxagon, advancing Saudi Arabia’s digital infrastructure.
NEOM, Saudi Arabia — In a landmark move towards a sustainable, data-driven economy, NEOM and DataVolt have signed an agreement to design and develop the region’s first net-zero artificial intelligence (AI) factory campus in Oxagon. This initiative underscores the Kingdom’s commitment to enhancing its digital infrastructure and solidifying its position as a leading data hub in the region.
The project will commence with an initial investment of USD 5 billion, funding the first phase of development, which is anticipated to be operational by 2028. The 1.5-gigawatt facility will incorporate a variety of computing densities and energy-efficient architectures, addressing the global challenges posed by traditional data centres.
Data centres currently consume between 1 to 1.3 percent of global electricity demand, according to the International Energy Agency. With advancements in generative AI, power consumption is expected to grow exponentially over the next decade, highlighting the necessity for a transition to clean, sustainable solutions.
Vishal Wanchoo, CEO of Oxagon, remarked, “The Kingdom is at the forefront of the global energy transition. At Oxagon, we are accelerating a renewable energy industrial ecosystem that is set to power businesses with green energy and technology solutions. The agreement with DataVolt highlights the potential impact of the sustainable infrastructure Oxagon offers its tenants and sets the foundations for the first green-AI workload to come on-stream in KSA along with the necessary computing power for regional and global impact.”
Rajit Nanda, CEO of DataVolt, added, “This agreement with NEOM and Oxagon underscores our unwavering commitment to support the Kingdom’s vision of becoming a regional digital and AI hub. The Kingdom’s strategic location, coupled with its abundant green energy resources, aligns perfectly with DataVolt’s mission in providing state-of-the-art sustainable data centres. This project marks a significant milestone in advancing the Kingdom’s leadership as a digital powerhouse in the region.”
As part of the agreement, Oxagon will lease land to DataVolt for the facility’s development and provide infrastructure support. The ambition is for the facility to be entirely powered by renewable energy, offering a fully integrated, end-to-end data centre solution. The project will utilise advanced cooling technologies and is designed to operate at net zero, addressing global challenges of power availability and the carbon footprint associated with data centres.
Oxagon’s strategic location on the Red Sea coast, combined with access to sub-sea cables providing fibre connectivity, alongside cost-competitive renewable energy, green hydrogen, and a rapidly expanding industrial ecosystem, makes it an ideal location for DataVolt to develop a large-scale green AI factory.
Source: NEOM
