Saudi Arabia’s large-scale development project, NEOM, and Riyadh-based sustainable data center company, DataVolt, have entered into an agreement to establish a net-zero AI-focused facility within NEOM’s Oxagon district.
The initial phase of this project involves a $5 billion investment to develop a 1.5 GW facility, integrating various computing densities and energy-efficient technologies. The center is expected to be fully operational by 2028.
This agreement comes at a time when the rapid expansion of AI is raising concerns about its environmental impact. The International Energy Agency (IEA) projects that power consumption from AI-driven data centers could double by 2026 and continue growing significantly in the coming years. Major technology firms such as Microsoft, Google, and Amazon have identified the rising energy demand of AI data centers as a critical challenge in their efforts to reduce carbon emissions.
As part of the agreement, DataVolt will secure land for the project from Oxagon, which will also provide necessary infrastructure support. The facility aims to achieve net-zero emissions, relying entirely on renewable energy and leveraging advanced cooling technologies.
Rajit Nanda, CEO of DataVolt, stated:
“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.”
NEOM highlights Oxagon’s strategic position along the Red Sea coast, offering access to subsea cables for fiber connectivity, along with affordable renewable energy and green hydrogen. This makes it an optimal location for developing a large-scale green AI facility.
Vishal Wanchoo, CEO of Oxagon, commented:
“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.”
