NEOM And DataVolt Collaborate On $5 Billion Sustainable AI Data Centre In Oxagon

NEOM has partnered with DataVolt, a Saudi firm known for its global data center operations, to create a large-scale AI-driven data center. This facility will have a total capacity of 1.5 gigawatts. The collaboration aligns with Saudi Vision 2030, aiming to build a sustainable economy through data and smart technologies.

The project will be located in Oxagon, NEOM's hub for clean industries, and will be developed in phases. An initial investment of $5 billion is planned for the first phase, which should be operational by 2028. The AI data center will feature high-density computing and energy-efficient infrastructure to tackle challenges faced by traditional data centers.

Oxagon CEO Vishal Wanchoo stated, "Saudi Arabia is taking confident steps toward achieving its ambitious vision, leading global efforts in the energy transition." He emphasized that the partnership with DataVolt highlights Oxagon's excellent infrastructure for industrial tenants. This project will establish the first energy-efficient AI-powered data center in Saudi Arabia, boosting digital infrastructure and reinforcing the country's leadership in AI globally.

DataVolt CEO Rajit Nanda remarked on Saudi Arabia’s strategic location and green energy resources as key factors supporting modern, sustainable data centers. "This project represents a major milestone in enhancing the Kingdom’s leadership and strength in digital technologies," he said.

The partners aim to power the entire project with renewable energy from design through operation. The facility will use advanced cooling technologies to set new standards for data centers globally while reducing their carbon footprint.

The International Energy Agency (IEA) reports that data centers currently consume 1 to 1.3% of global electricity. This figure is expected to rise significantly due to generative AI technologies' growth. Thus, sustainable solutions are crucial to address high energy consumption and reduce carbon footprints.

Ideal Location for Development

Oxagon's location on the Red Sea coast offers high-speed fiber optic connectivity via subsea cables and affordable renewable energy supply. Its advanced industrial ecosystem makes it an ideal site for developing a large-scale green AI factory.

This initiative marks a significant step towards achieving Saudi Vision 2030 by fostering a sustainable economy based on smart technologies and data-driven solutions.

With inputs from SPA