NEOM and DataVolt to Develop 1.5 GW Data Center in Oxagon

Saudi Arabia’s vision for a sustainable and data-driven economy is on track with its $500 billion futuristic city project NEOM, the sustainable region taking shape in northwest Saudi Arabia, teamed up with DataVolt, a Saudi-based international developer, investor and operator of data centers, to design and develop a large-scale artificial intelligence-powered data center with a total capacity of 1.5 GW.

The project will be implemented in Oxagon, NEOM’s hub for clean and advanced industries, in a phased manner, with phase one – funded by an initial investment of $5 billion – expected to be operational by 2028.

As part of the agreement, Oxagon will lease DataVolt the land for the development of the facility and provide the sustainable data center operator with infrastructure support.

As part of their shared ambitions, both parties aim to fully power the project with renewable energy, from design to operational execution. The facility will incorporate cutting-edge cooling technologies, setting new global standards for data centers and helping to mitigate the environmental impact of their carbon footprint.

Aligning with Oxagon’s ambition, the project will integrate a wide range of computing densities and energy-efficient architectures to address the global challenges posed by traditional data centers.

According to the International Energy Agency (IEA), data centers currently account for 1% to 1.3% of total global electricity consumption, and this figure is expected to increase significantly over the next decade due to the rapid growth of generative AI technologies. Hence, clean and sustainable solutions are urgently needed to address the high energy consumption and minimise the cumulative carbon footprint of data centers.

The energy-intensive nature of data centers and the cumulative impact of associated carbon emissions necessitate a rapid need for transition to clean sustainable solutions.

Sustainable Infrastructure

Oxagon CEO Vishal Wanchoo said that the Kingdom has been at the forefront of the global energy transition and Oxagon, was accelerating a renewable energy industrial ecosystem that is set to power businesses with green energy and technology solutions.

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, Wanchoo added.

In his comments, Datavolt CEO Rajit Nanda said that this agreement with NEOM and Oxagon underscores their unwavering commitment to support the Kingdom’s vision of becoming a regional digital and AI hub.

Saudi Arabia’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. This project marks a significant milestone in advancing the Kingdom’s leadership as a digital powerhouse in the region, he added.

Oxagon’s strategic location on the Red Sea coast, combined with access to sub-sea cables providing fiber connectivity, alongside cost-competitive renewable energy, green hydrogen, and a rapidly expanding industrial ecosystem, makes it the ideal location for DataVolt to develop a large-scale green AI factory.