Last Updated: 10 February 2025
NEOM and DataVolt have embarked on a groundbreaking venture to establish the first sustainable, net-zero AI factory campus in Oxagon.
This initiative not only supports the expansion of digital infrastructure in the Kingdom of Saudi Arabia but also aligns with the ambitious Saudi Vision 2030, enhancing the Kingdom's reputation as a global hub for data and innovation.
The journey begins with a substantial initial investment of USD 5 billion from DataVolt, earmarked for the first phase of the factory's development, which is slated to become operational by 2028.
This phase will showcase an advanced 1.5-gigawatt factory equipped to handle a variety of computing densities and energy-efficient designs, aimed at tackling the worldwide challenges currently presented by traditional data centers.
Data centers are known to consume between 1% and 1.3% of global electricity, a demand that is set to surge with the rise of generative AI technologies. The design of this factory emphasizes sustainability, aiming to radically decrease carbon emissions and the overall environmental footprint of data centers.
This project is a stride toward transitioning to clean, sustainable technology solutions essential for future expansions.
"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 KSA along with the necessary computing power for regional and global impact."
Vishal Wanchoo, CEO of Oxagon
Oxagon will lease the land necessary for this monumental development to DataVolt and provide crucial infrastructure support. The factory, fully powered by renewable energy, will feature state-of-the-art cooling technologies and aims to operate with zero net emissions.
“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. This project marks a significant milestone in advancing the Kingdom’s leadership as a digital powerhouse in the region.”
Rajit Nanda, CEO of DataVolt
Located strategically on the Red Sea coast, Oxagon is set to transform industry by merging innovation, sustainability, and livability. With access to sub-sea cables and cost-effective renewable energy sources, Oxagon is ideally positioned to support large-scale, sustainable projects like the DataVolt AI factory.
