NEOM & DataVolt to build $5 billion net-zero AI factory campus
NEOM's Oxagon to host Saudi Arabia’s first sustainable AI data centre
#Saudi #LEAP25 – NEOM has signed a landmark agreement with Saudi-based data centre developer DataVolt to build a cutting-edge AI-powered data centre in Oxagon, the Kingdom’s hub for clean industries. The facility, backed by an initial $5 billion investment, will have a total capacity of 1.5 GW (gigawatts) and aims to be fully powered by renewable energy. Expected to be operational by 2028, the centre will integrate high-density computing and energy-efficient technologies, reinforcing the country’s position as a leader in AI and data infrastructure.
SO WHAT? – The new initiative promises to deliver the world’s first net-zero AI data centre, with the lowest cost of compute services. The significant investment in Oxagon bolsters the new industrial city’s ambition to become a regional hub for AI and data-driven technologies. The project aligns with global trends demanding sustainable data centre solutions, as AI workloads increasingly drive up power consumption worldwide.
Here are a few key facts about the new initiative:
NEOM has signed a partnership agreement with DataVolt, a Saudi company specialising in the investment, development, and operation of data centres worldwide, to design and develop a large-scale net-zero AI data centre campus with a total capacity of 1.5 GW.
The first phase of the AI-powered data centre will be backed by DataVolt and an initial investment of $5 billion, with operations starting in 2028.
According to the backers, the project will be powered entirely by renewable energy, integrating advanced cooling technologies to minimise its carbon footprint.
Situated on the Red Sea, Oxagon offers high-speed fibre connectivity through subsea cables and access to affordable renewable energy.
According to the IEA, data centres already consume up to 1.3% of global electricity, with AI growth expected to push this higher, underscoring the need for sustainable solutions.
This initiative further strengthens Saudi Arabia as a leader in AI and data infrastructure, with growing regional and global influence.
ZOOM OUT – Oxagon is redefining industrial development by integrating Industry 4.0 principles with a circular economy approach, creating a purpose-built, clean manufacturing ecosystem. The city aims to be powered entirely by renewable energy, supporting its goal of becoming a global leader in green manufacturing. Oxagon is collaborating with renewable energy manufacturers and major stakeholders, such as Envision Energy Co, to establish solar and wind component factories.
Read more about the Middle East’s data centre sector:
Groq opens EMEA's largest AI compute centre in KSA (Middle East AI News)
Microsoft finishes construction for new Saudi data centre (Middle East AI News)
Gcore & Ezditek launch JV, to create AI factory in Riyadh (Middle East AI News)
Ooredoo secures $549m for MENA AI infrastructure (Middle East AI News)