NEOM and DataVolt Launch a $5 Billion Sustainable AI Project

NEOM, the future city in Saudi Arabia, announced the signing of a partnership agreement with DataVolt, a Saudi company specialized in investing and developing global data centers.

The project aims to establish a huge artificial intelligence factory that operates as an integrated data center with a total capacity of up to 1.5 gigawatts, with initial investments estimated at $5 billion.

Project Details

The project will be implemented in Oxagon, the clean and advanced industrial city in NEOM, in phases. It is scheduled to start actual operation by 2028.

The project will include an integrated data center for high-density computing, supported by energy-efficient infrastructure, supporting NEOM’s ambitions to meet the global challenges associated with traditional data centers.

Project Objectives

Achieving Saudi Vision 2030: The project contributes to building a sustainable economy based on data and smart technologies, in line with Saudi Vision 2030.

Environmental Sustainability: The project aims to achieve net zero emissions, with the entire project powered by renewable energy.

Enhancing Regional and Global Leadership: The project will position Saudi Arabia at the forefront of leading countries in the field of artificial intelligence and digital innovation.

Official Statements

Vishal Wanchoo, CEO of Oxagon: “Our partnership with Datavolt reflects the importance of the infrastructure provided by Oxagon, and we seek to accelerate the development of a sustainable ecosystem that supports companies with green energy and advanced technology solutions.”

Rajit Nanda, CEO of Datavolt: “This partnership represents an advanced step towards establishing the Kingdom as a leading regional hub for digital innovation and artificial intelligence.”

Challenges and Solutions

According to the International Energy Agency, global data centers currently consume between 1% and 1.3% of total electricity consumption.

This consumption is expected to increase significantly with the growth of generative AI technologies. Therefore, the project aims to adopt clean and sustainable solutions to reduce the carbon footprint of data centers.

Oxagon Features

Oxagon is an ideal location for the project thanks to:

Its strategic location on the Red Sea coast.

High-speed connectivity capabilities via submarine fiber optic cables.

Availability of low-cost renewable energy and green hydrogen.

Advanced industrial ecosystem.

This project represents a major step towards strengthening Saudi Arabia’s position as a leader in the field of artificial intelligence and digital innovation at the regional and global levels, with a focus on environmental sustainability and reducing carbon emissions.