Saudi Arabia’s ambitious development megaproject, NEOM, has partnered with Riyadh-based sustainable data center developer DataVolt to establish a groundbreaking net-zero AI factory campus in NEOM’s Oxagon region. This agreement outlines a substantial $5 billion investment for its first phase, aimed at creating a 1.5 GW factory that integrates diverse computing densities with energy-efficient architectures. The facility is expected to be operational by 2028.

Tackling AI's Energy Demands with Sustainability

The rapid growth of artificial intelligence presents significant challenges to global carbon reduction efforts. The International Energy Agency (IEA) predicts that AI-driven data center power usage could double by 2026, escalating concerns about environmental impacts. Tech giants like Microsoft, Google, and Amazon have already flagged the increasing energy demands of AI-driven data centers as obstacles to achieving their decarbonization goals.

Key Features of the NEOM-DataVolt Agreement

Under the agreement, DataVolt will lease land from Oxagon for the development of the AI factory, with Oxagon providing essential infrastructure support. The facility is designed to operate at net-zero emissions, powered entirely by renewable energy and incorporating advanced cooling technologies to enhance energy efficiency.

Rajit Nanda, CEO of DataVolt, emphasized the strategic significance of the project:

“This agreement with NEOM and Oxagon underscores our unwavering commitment to support the Kingdom’s vision of becoming a regional digital and AI hub. The Kingdom’s strategic location, coupled with its abundant green energy resources, aligns perfectly with DataVolt’s mission in providing state-of-the-art sustainable data centers.”

Oxagon: A Strategic Location for Green AI

Oxagon’s prime location on the Red Sea coast offers access to sub-sea cables for robust fiber connectivity, cost-competitive renewable energy, and green hydrogen. These advantages position it as the ideal site for developing a large-scale, green AI factory.

Vishal Wanchoo, CEO of Oxagon, highlighted the project’s transformative potential:

“The agreement with DataVolt highlights the potential impact of the sustainable infrastructure Oxagon offers its tenants and sets the foundations for the first green-AI workload to come on-stream in KSA, along with the necessary computing power for regional and global impact.”

This collaboration marks a pivotal step in Saudi Arabia’s vision to become a leading digital and AI hub, fostering sustainable technological advancements with global influence.