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

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.

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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.

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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.”