• $5B investment: DataVolt to fund phase one of the net-zero AI factory, operational by 2028.
• Green AI infrastructure: Facility will run on renewable energy and integrate advanced cooling for energy efficiency.
• Saudi Arabia’s digital expansion: Reinforces KSA’s role as a regional data hub and AI powerhouse.

NEOM & DataVolt partner for sustainable AI future

NEOM and DataVolt have signed a landmark agreement to develop the first net-zero AI factory campus in Oxagon, northwest Saudi Arabia. The $5 billion investment will fund the initial phase, with operations set to begin in 2028.

Why it matters:

The energy-intensive nature of data centers is a growing global concern. The project aligns with Saudi Arabia’s vision to transition to sustainable, AI-driven digital infrastructure.

The big picture:

Data centers currently consume 1–1.3% of global electricity (IEA). With generative AI advancements, power demands will surge, necessitating sustainable solutions.

Related Article: SingTel Secures $476 Million Green Loan To Develop Sustainable Data Center in Singapore

Leadership insights:

Vishal Wanchoo, CEO of Oxagon: “The Kingdom is at the forefront of the global energy transition. Oxagon’s green energy and tech solutions will power businesses sustainably.”

Rajit Nanda, CEO of DataVolt: “This agreement supports Saudi Arabia’s vision to be a regional AI hub, leveraging its strategic location and abundant green energy resources.”

What’s next?

Oxagon will lease land to DataVolt and provide infrastructure support. The facility will be fully powered by renewable energy, utilize advanced cooling, and operate at net zero emissions. Oxagon’s location on the Red Sea offers access to fiber connectivity, green hydrogen, and a growing industrial ecosystem, positioning it as a premier AI data hub.

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