DataVolt and NEOM team to develop net-zero AI factory

DataVolt and NEOM team to develop net-zero AI factory

Saudi Arabia view from orbit

DataVolt has signed an agreement with NEOM to design and develop the region’s first sustainable, net-zero AI factory campus in Oxagon, marking a significant step in Saudi Arabia’s digital transformation.

The first phase of the project will be funded by an initial US$5 billion investment and is expected to be operational by 2028. The 1.5-gigawatt factory will integrate a range of computing densities and energy-efficient architectures, tackling the global challenges posed by traditional data centres.

This agreement aligns with Saudi Vision 2030, reinforcing the Kingdom’s position as a leading global data hub.

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As data centres consume an increasing share of global electricity—currently estimated at 1 to 1.3% according to the International Energy Agency (IEA)—the transition to clean, sustainable solutions is critical.

With the rise of generative AI, power consumption is projected to grow exponentially over the next decade.

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 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 centres. This project marks a significant milestone in advancing the Kingdom’s leadership as a digital powerhouse in the region.”

As part of the agreement, Oxagon will lease land to DataVolt for the development of the facility and provide infrastructure support. The ambition is for the facility to be entirely powered by renewable energy, creating a fully integrated, end-to-end data centre solution.

The project will utilise advanced cooling technologies and operate at net zero, addressing global power availability challenges and reducing carbon emissions.

Oxagon’s strategic location on the Red Sea coast, access to subsea cables, cost-competitive renewable energy, green hydrogen, and an expanding industrial ecosystem make it the ideal site for DataVolt’s large-scale green AI factory.

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