NEOM and DataVolt Plan $5 Billion Net-Zero AI Data Center
Saudi Arabia's NEOM and DataVolt agreed to build a net-zero AI data center in NEOM's Oxagon district, with a $5 billion first phase developing a 1.5 GW facility powered entirely by renewables. The project addresses AI's rising energy demand, a sustainability challenge facing India's expanding data-center sector.
Saudi Arabia's NEOM and Riyadh-based DataVolt agreed to establish a net-zero AI-focused facility within NEOM's Oxagon district. The initial phase involves a $5 billion investment to develop a 1.5 GW facility integrating various computing densities and energy-efficient technologies, expected fully operational by 2028. The facility aims for net-zero emissions, relying entirely on renewable energy and advanced cooling technologies. DataVolt will secure land from Oxagon, which provides infrastructure support, with Oxagon's Red Sea coast location offering subsea cable connectivity, affordable renewable energy and green hydrogen.
The project responds to mounting concern over AI's environmental impact, as the International Energy Agency projects power consumption from AI-driven data centers could double by 2026 and keep rising. Major technology firms including Microsoft, Google and Amazon have identified AI data centers' energy demand as a critical challenge to cutting carbon emissions. The development affects the regional digital and AI infrastructure market, with DataVolt CEO Rajit Nanda citing support for the Kingdom's vision to become a regional digital and AI hub.
Operators and investors in sustainable computing should monitor the project's progress toward full operation by 2028 as a benchmark for net-zero AI infrastructure powered entirely by renewables. Oxagon CEO Vishal Wanchoo described it as the first green-AI workload to come on-stream in Saudi Arabia. Stakeholders should track how the facility's renewable sourcing and advanced cooling deliver against net-zero claims, given the IEA projection that AI data center power consumption could double by 2026, intensifying decarbonisation pressures.
Key figure — First-phase investment: $5 billion for 1.5 GW facility by 2028
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