NEOM Partners With DataVolt For $5 Billion Sustainable AI Data Center 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 with a 1.5-gigawatt capacity. This initiative supports Saudi Vision 2030 by fostering a sustainable economy through data and smart technologies. The project will be located in Oxagon, NEOM's hub for clean industries, and will be executed in phases.

The initial phase of the project will receive $5 billion in investment and is projected to be operational by 2028. The AI data center will integrate high-density computing systems and energy-efficient infrastructure. This aligns with Oxagon's goal to tackle global challenges linked to traditional data centers.

The collaboration aims to power the entire project with renewable energy throughout its design and operational stages. The facility will employ advanced cooling technologies, setting new benchmarks for data centers worldwide while reducing their environmental impact.

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

"Saudi Arabia is taking confident steps toward achieving its ambitious vision, leading global efforts in the energy transition," said Oxagon chief executive Vishal Wanchoo. "Our strategic partnership with DataVolt underscores the significance and excellence of the infrastructure Oxagon offers its industrial tenants."

DataVolt CEO Rajit Nanda highlighted Saudi Arabia’s strategic geographic position and abundant green energy resources as key factors supporting their efforts to develop modern, sustainable data centers in the region. "This project represents a major milestone in enhancing the Kingdom’s leadership and strength in digital technologies," he stated.

Addressing Energy Consumption

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

This partnership not only strengthens Saudi Arabia’s leadership in AI but also contributes significantly to developing digital infrastructure at both regional and global levels.

With inputs from SPA