Saudi Arabia โ DataVolt, a Saudi-based data center developer, has signed an agreement with NEOM to establish theย regionโs first net-zero AI factory campusย inย Oxagon. The project, backed by anย initial USD 5 billion investment, is set toย redefine digital infrastructureย and position Saudi Arabia as aย global leader in AI-driven sustainability.
A Green AI Factory for the Future
Theย 1.5-gigawattย facility will beย fully powered by renewable energy, integratingย advanced cooling technologiesย andย energy-efficient architecturesย to meet theย growing demand for AI computing. Theย first phaseย is expected to be operational byย 2028.
Withย data centers currently consuming up to 1.3% of global electricity, the rise ofย generative AIย is set toย exponentially increase power demand. This project will address that challenge by offeringย scalable, eco-friendly computing solutions.
Strategic Importance of the Partnership
Vishal Wanchoo, CEO of Oxagon, highlighted the Kingdomโsย leadership in the global energy transition, stating that the project lays the foundation for theย first green AI workloadsย in Saudi Arabia.
Rajit Nanda, CEO of DataVolt, emphasized the alignment betweenย Saudi Arabiaโs strategic location, renewable energy resources, and the companyโs mission to develop sustainable data centers.
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Why Oxagon?
Situated on theย 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 toย DataVoltย and provideย infrastructure support, ensuring aย fully integrated, end-to-endย data center solution.
Saudi Arabiaโs AI and Cloud Ambitions
The DataVolt AI factory aligns withย Vision 2030, positioning Saudi Arabia as theย leading digital hub in the Middle East. The project will:
- Attract global AI and cloud computing firms
- Enhance Saudi Arabiaโs AI and cloud capabilities
- Support economic diversification through high-tech innovation
With theย first phase launching in 2028, thisย landmark initiativeย cementsย Saudi Arabiaโs role as a digital powerhouse, drivingย sustainable AI and cloud solutionsย on a global scale.
