Saudi Arabia – DataVolt, a Saudi-based data center developer, has signed an agreement with NEOM to establish the region’s first net-zero AI factory campus in Oxagon. The project, backed by an initial USD 5 billion investment, is set to redefine digital infrastructure and position Saudi Arabia as a global leader in AI-driven sustainability.
A Green AI Factory for the Future
The 1.5-gigawatt facility will be fully powered by renewable energy, integrating advanced cooling technologies and energy-efficient architectures to meet the growing demand for AI computing. The first phase is expected to be operational by 2028.
With data centers currently consuming up to 1.3% of global electricity, the rise of generative AI is set to exponentially increase power demand. This project will address that challenge by offering scalable, eco-friendly computing solutions.
Strategic Importance of the Partnership
Vishal Wanchoo, CEO of Oxagon, highlighted the Kingdom’s leadership in the global energy transition, stating that the project lays the foundation for the first green AI workloads in Saudi Arabia.
Rajit Nanda, CEO of DataVolt, emphasized the alignment between Saudi Arabia’s strategic location, renewable energy resources, and the company’s mission to develop sustainable data centers.
Why Oxagon?
Situated on the Red Sea coast, Oxagon offers:
- 100% renewable energy-powered operations
- Access to global subsea fiber connectivity
- Green hydrogen integration for sustainability
- Proximity to major trade routes like the Suez Canal
- A growing industrial and tech ecosystem
NEOM will lease land to DataVolt and provide infrastructure support, ensuring a fully integrated, end-to-end data center solution.
Saudi Arabia’s AI and Cloud Ambitions
The DataVolt AI factory aligns with Vision 2030, positioning Saudi Arabia as the leading digital hub in the Middle East. The project will:
- Attract global AI and cloud computing firms
- Enhance Saudi Arabia’s AI and cloud capabilities
- Support economic diversification through high-tech innovation
With the first phase launching in 2028, this landmark initiative cements Saudi Arabia’s role as a digital powerhouse, driving sustainable AI and cloud solutions on a global scale.
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