Neom and DataVolt Partner to Build USD 5 Billion AI Data Center in Oxagon

An initial investment of USD 5 billion by DataVolt will fund the first phase of the factory’s development, expected to be operational by 2028.

Highlights

  • NEOM and DataVolt sign an agreement to build a 1.5 GW net-zero AI factory in Oxagon.
  • Oxagon is set to become an industrial city powered by renewable energy.
  • NEOM’s Oxagon offers subsea fiber connectivity, green hydrogen, and cost-competitive renewable energy, making it an optimal location.

Follow Us

Neom and DataVolt Partner to Build USD 5 Billion AI Data Center
Saudi Arabia's Neom and DataVolt have signed an agreement to develop a 1.5-gigawatt (GW) net-zero artificial intelligence (AI) factory in its Oxagon zone. The development will take a phased approach, with phase one funded by an initial investment of USD 5 billion expected to be operational by 2028, Neom and DataVolt announced on Tuesday, February 11, 2025.

Also Read: Fluidstack to Build AI Supercomputer in France with EUR 10 Billion Investment




Aligning with Saudi Arabia’s Vision

Aligning with Saudi Arabia's vision for a sustainable, data-driven economy, the factory will integrate a wide range of computing densities and energy-efficient architectures to address the global challenges posed by traditional data centers.

Neom says that Oxagon is set to become an industrial city in northwest Saudi Arabia powered by renewable energy. According to the International Energy Agency (IEA), data centers currently consume between 1 to 1.3 percent of global electricity demand. With the advancements of generative AI, power consumption is expected to grow exponentially over the next decade, the partners noted.

Also Read: Equinix Opens Data Center in France with EUR 350 Million Investment

Commenting on the announcement, Vishal Wanchoo, CEO of Oxagon, said: "At Oxagon, we are 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."

Rajit Nanda, CEO of DataVolt, added: "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."

Also Read: Mistral AI to Build First Data Centre in France: Report

Net-Zero AI Data Facility

As part of the agreement, Oxagon will lease land to DataVolt for the development of the facility and provide the data center operator with infrastructure support. The goal is for the facility to be entirely powered by renewable energy, offering a fully integrated, end-to-end data center solution. According to the partners, the project will utilise advanced cooling technologies and is designed to operate at net zero, addressing the global challenges.

Neom's Oxagon

Neom noted that Oxagon's location on the Red Sea coast, combined with access to sub-sea cables providing fiber connectivity, along with cost-competitive renewable energy, green hydrogen, and an industrial ecosystem, makes it the ideal location for DataVolt to develop a large-scale green AI factory.

Reported By

Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

Recent Comments

Faraz :

Idk, 3 of them are secondary inactive SIM and one is new with unlimited 5G option active on it. But…

Airtel, Jio Add Wireless Subscribers in May 2025, While Vodafone…

Faraz :

I'm getting unlimited 5G from Vi. But they are not giving 12-6 night unlimited nor weekend rollover in 299. Without…

Vodafone Idea to Launch 5G in 23 More Cities, Enhances…

Suhail Ansari :

No Volte What use of bsnl 2G at on call primary bsnl sim while bank call or other txn otps…

BSNL Announces 400GB Data for Rs 400 Only

Sujata :

Little improvement. Speed isn't great, it's actually worse than top class 3G XD. But somehow day to day browsing and…

Airtel, Jio Add Wireless Subscribers in May 2025, While Vodafone…

Shubh :

Now BSNL is the only sleeping Telco left in India besides ghost of MTNL, Even Vi has awaken though how…

Vodafone Idea to Launch 5G in 23 More Cities, Enhances…

Load More
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments