NEOM has signed a strategic partnership with Saudi-based Datavolt, a global leader in data center investment, development, and operations, to establish a large-scale AI-powered data center with a total capacity of 1.5 gigawatts. The project will begin with an initial investment of $5 billion.
Announced during the LEAP Tech Conference 2025, this initiative aligns with Saudi Arabia’s Vision 2030 by fostering a sustainable, data-driven economy powered by cutting-edge technologies, according to the Saudi Press Agency.
The project will be developed in Oxagon, NEOM’s hub for clean and advanced industries, and will be rolled out in phases. The first phase, backed by a $5 billion investment, is expected to be operational by 2028. Designed as a high-density computing ecosystem, the center will incorporate energy-efficient infrastructure, reinforcing Oxagon’s commitment to tackling global challenges associated with traditional data centers.
Vishal Wanchoo, CEO of Oxagon, emphasized Saudi Arabia’s rapid progress in achieving its Vision 2030 goals, positioning itself at the forefront of the global energy transition. He described the partnership with Datavolt as a testament to Oxagon’s world-class infrastructure, which supports manufacturers and enables the creation of Saudi Arabia’s first AI-powered, energy-efficient data center. This initiative will enhance the Kingdom’s digital infrastructure and strengthen its leadership in AI technologies regionally and globally.
Datavolt CEO Rajit Nanda highlighted Saudi Arabia’s strategic location and vast green energy resources as key factors supporting the development of state-of-the-art, sustainable data centers. He added that this project would further solidify the Kingdom’s position as a leader in digital technology and AI innovation.
Both NEOM and Datavolt are committed to powering the entire project with renewable energy, integrating innovative cooling technologies to set new global benchmarks for sustainable data centers. This approach will address the carbon footprint challenges posed by AI-driven data processing.
According to the International Energy Agency (IEA), data centers currently consume between 1% and 1.3% of global electricity. This demand is projected to rise significantly over the next decade, driven by the rapid expansion of generative AI technologies. As a result, the need for clean and sustainable energy solutions to mitigate high energy consumption and carbon emissions has become more urgent than ever.
Oxagon provides the ideal environment for developing a large-scale, green AI facility, thanks to its strategic location on the Red Sea coast, high-speed connectivity via undersea fiber-optic cables, access to low-cost renewable energy and green hydrogen, and an advanced industrial ecosystem designed for future technologies.
