Saudi Arabia’s NEOM has signed a $5 billion agreement with DataVolt to develop a 1.5-gigawatt net-zero artificial intelligence project in the Oxagon industrial zone, with the first phase set to be operational by 2028.
The project aims to establish an integrated data center to support AI growth while aligning with NEOM’s sustainability goals. Saudi Arabia is pushing to become a major AI hub, competing with regional players like the UAE and Qatar, leveraging its energy resources and financial capacity to attract AI investments. The kingdom has been working on a $40 billion AI fund with foreign partners to further cement its position in the global AI race.
NEOM, a megaproject nearly the size of Belgium, is central to Saudi Arabia’s Vision 2030, an initiative aimed at reducing dependence on oil revenue and diversifying the economy. Oxagon, the planned industrial city within NEOM, is set to be powered entirely by renewable energy. The partnership with DataVolt is expected to deliver energy-efficient AI computing solutions, addressing the increasing power demands of generative AI.
According to the International Energy Agency, data centers currently consume up to 1.3 percent of global electricity demand, with AI advancements expected to drive consumption even higher. The project integrates advanced cooling technologies and renewable energy solutions to operate at net zero and mitigate carbon emissions.
Vishal Wanchoo, CEO of Oxagon, emphasized the project’s role in accelerating a renewable energy industrial ecosystem, stating that Oxagon is positioned to power businesses with green energy solutions.
Rajit Nanda, CEO of DataVolt, highlighted Saudi Arabia’s strategic location and abundant green energy resources as key factors in developing state-of-the-art sustainable data centers.
Oxagon will lease the land for the facility and provide infrastructure support, ensuring a fully integrated data center solution powered entirely by renewable energy. The project’s location on the Red Sea coast, with access to fiber-optic cables and green hydrogen, strengthens its potential as a large-scale green AI hub for regional and global markets.
