NEOM, the sustainable region taking shape in northwest Saudi Arabia, and DataVolt, a Saudi-based international developer, investor and operator of data centres, signed a landmark agreement, marking a significant step toward realizing Saudi Arabia’s vision for a sustainable, data-driven economy.
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. Aligning with Oxagon’s ambition, the 1.5-gigawatt factory will integrate a wide range of computing densities and energy-efficient architectures to address the global challenges posed by traditional data centres.
According to the International Energy Agency, data centres currently consume between 1 to 1.3% of global electricity demand. With the advancements of generative AI, power consumption is expected to grow exponentially over the next decade. The energy-intensive nature of data centres and the cumulative impact of associated carbon emissions necessitate a rapid need for transition to clean sustainable solutions.
Commenting on the landmark announcement, Vishal Wanchoo, CEO of Oxagon, said: “The Kingdom is at the forefront of the global energy transition. 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 Saudi Arabia 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 Saudi Arabia’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 centres. This project marks a significant milestone in advancing Saudi Arabia’s leadership as a digital powerhouse in the region.”
As part of the agreement, Oxagon will lease DataVolt the land for the development of the facility and provide the sustainable data centre operator with infrastructure support. The ambition is for the facility to be entirely powered by renewable energy, providing a fully integrated, end-to-end data centre solution. The project will utilise advanced cooling technologies and is designed to operate at net zero, addressing the global challenges of power availability and the carbon footprint posed by data centres.
Oxagon’s strategic location on the Red Sea coast, combined with access to sub-sea cables providing fibre connectivity, alongside cost-competitive renewable energy, green hydrogen, and a rapidly expanding industrial ecosystem, makes it the ideal location for DataVolt to develop a large-scale green AI factory.
NEOM is an accelerator of human progress and a vision of what a New Future might look like. It is a region in northwest Saudi Arabia on the Red Sea being built from the ground up as a living laboratory – a place where entrepreneurship will chart the course for this New Future. It will be a destination and a home for people who dream big and want to be part of building a new model for exceptional liveability, creating thriving businesses and reinventing environmental conservation.
NEOM will include hyperconnected, cognitive cities, ports and enterprise zones, research centres, sports and entertainment venues and tourist destinations. As a hub for innovation, entrepreneurs, business leaders and companies will come to research, incubate and commercialise new technologies and enterprises in groundbreaking ways. Residents of NEOM will embody an international ethos and embrace a culture of exploration, risk-taking and diversity.
Oxagon is the reimagined industrial city in NEOM, in northwest Saudi Arabia, where innovation, sustainability and liveability will converge to change industry for the better. The cognitive industrial city will be home to a next-generation sustainable port – Port of NEOM, a dedicated mixed-use innovation district – Oxagon Innovation Bay, an industrial district – Oxagon Industrial Quarter – which will house advanced and clean manufacturing across seven industrial sectors, and integrated urban communities including Oxagon Village.
Strategically located on the Red Sea coast, with 13% of world trade passing via the nearby Suez Canal, and set to be powered by 100% renewables-based energy, Oxagon offers a blueprint for sustainable industrial transformation.
DataVolt is an international developer, investor, and operator of data centres, integrating dedicated high-availability multi-technology renewable energy infrastructure solutions and green fuels, with a strong focus on innovation, sustainability, and scalability.
Headquartered in Saudi Arabia, with offices currently in the USA, Uzbekistan, India, and the UAE, DataVolt has strong global ambitions spanning across the Middle East, Africa, and Asia. DataVolt’s core focus is servicing the needs of hyperscalers, large enterprises and government institutions.
DataVolt focuses on adopting innovative technologies for critical digital infrastructure, driving scale and sustainability, and hence achieving cost leadership, all the while ensuring operational excellence. Committed to a net-zero future, DataVolt integrates cutting-edge energy efficiency solutions, advanced cooling technologies, and renewable power sources to minimise its carbon footprint.
By prioritising sustainable operations, DataVolt is setting new standards in environmentally responsible data infrastructure, helping to drive a cleaner, greener digital economy.
