NEOM signed a partnership agreement with DataVolt to design and develop a large-scale artificial intelligence-powered data centre with a total capacity of 1.5 gigawatts.
The partnership marks a significant step toward achieving Saudi Vision 2030 by building a sustainable economy based on data and smart technologies.
Under the agreement, the project will be implemented in Oxagon, NEOM’s hub for clean and advanced industries, and will be executed in phases.
NEOM AI data centre in Oxagon, Saudi Arabia
The first phase will receive an initial investment of $5bn and is expected to be operational by 2028.
The AI data centre will feature an integrated system for high-density computing and energy-efficient infrastructure, supporting Oxagon’s ambition to address the global challenges associated with traditional data centres.
Oxagon chief executive Vishal Wanchoo said: “Saudi Arabia is taking confident steps toward achieving its ambitious vision, leading global efforts in the energy transition. Our strategic partnership with DataVolt underscores the significance and excellence of the infrastructure Oxagon offers its industrial tenants.
“This project will establish the first energy-efficient AI-powered data centre in the Kingdom, contributing to the development of digital infrastructure and reinforcing Saudi Arabia’s leadership in AI at both the regional and global levels”.
DataVolt chief executive Rajit Nanda said: “Saudi Arabia’s strategic geographic location and abundant green energy resources support our efforts to develop modern, sustainable data centres in the region.
“This project represents a major milestone in enhancing the Kingdom’s leadership and strength in digital technologies”.
As part of their shared ambitions, both parties aim to fully power the project with renewable energy, from design to operational execution.
The facility will incorporate cutting-edge cooling technologies, setting new global standards for data centres and helping to mitigate the environmental impact of their carbon footprint.
According to the International Energy Agency (IEA), data centres currently account for 1 to 1.3 per cent of total global electricity consumption, and this figure is expected to increase significantly over the next decade due to the rapid growth of generative AI technologies.
Therefore, clean and sustainable solutions are urgently needed to address the high energy consumption and minimise the cumulative carbon footprint of data centres.
Oxagon’s strategic location on the Red Sea coast, its high-speed fibre optic connectivity via subsea cables, its affordable renewable energy supply, and its advanced industrial ecosystem make it an ideal site for the development of a large-scale green AI factory.
Follow us on
