NEOM, the sustainable region in northwest Saudi Arabia, and DataVolt, a Saudi-based international developer and operator of data centers, have signed a landmark agreement to build a sustainable, data-driven economy. The development will proceed in phases, with phase one, funded by a $5 billion investment, expected to be operational by 2028.
The project aligns with Oxagon’s ambition to address global data center challenges with a 1.5-gigawatt factory that integrates energy-efficient architectures and computing densities. With data centers consuming 1 to 1.3 percent of global electricity, and power consumption expected to rise due to generative AI, transitioning to clean and sustainable energy solutions is critical.
Vishal Wanchoo, CEO of Oxagon, highlighted the kingdom’s leadership in the global energy transition, and the sustainable infrastructure provided by Oxagon will play a key role in powering businesses with green energy. This collaboration also sets the stage for the first green-AI workload in Saudi Arabia, ensuring the necessary computing power for regional and global impact.
Rajit Nanda, CEO of DataVolt, emphasized the company’s commitment to supporting Saudi Arabia’s vision of becoming a regional digital and AI hub. The project will be powered entirely by renewable energy and designed to operate at net-zero, utilizing advanced cooling technologies and focusing on reducing the carbon footprint of traditional data centers.
Oxagon will lease the land to DataVolt and provide infrastructure support, making the strategic location on the Red Sea coast ideal for the development of the green AI factory. With access to renewable energy, green hydrogen, and fiber connectivity, the project positions Saudi Arabia as a digital powerhouse in the region.
