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NEOM, Datavolt Partner on $5 Billion Sustainable AI Project

A group photo after the signing of the agreement between NEOM and Datavolt. (LEAP 25)
A group photo after the signing of the agreement between NEOM and Datavolt. (LEAP 25)
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NEOM, Datavolt Partner on $5 Billion Sustainable AI Project

A group photo after the signing of the agreement between NEOM and Datavolt. (LEAP 25)
A group photo after the signing of the agreement between NEOM and Datavolt. (LEAP 25)

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.

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White House Escalates Pressure Campaign on Federal Reserve by Targeting Its Headquarters Renovation

President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)
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White House Escalates Pressure Campaign on Federal Reserve by Targeting Its Headquarters Renovation

President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)

The White House is trying to turn the Federal Reserve into a poster child for wasteful spending, criticizing an expensive renovation at the central bank’s headquarters as President Donald Trump pursues an extraordinary pressure campaign to lower interest rates.

The latest step came Thursday when Russ Vought, Trump’s top budget adviser, sent a letter to Federal Reserve Chairman Jerome Powell saying the president is “extremely troubled” that plans may have violated government building rules with an “ostentatious overhaul."

Trump also named two close aides — James Blair, a deputy chief of staff, and Will Scharf, the staff secretary who furnishes the president with executive orders for his signature — to the National Capital Planning Commission, an obscure panel that could provide another avenue to increase scrutiny.

Blair said he would be “requesting a review of all previous and current building plans” and suggested that Powell wasn’t honest while testifying to Congress about the renovations last month.

If Powell isn’t truthful, Blair wrote on social media, “how else is the American Public to maintain confidence that its monetary policy manager is acting in their interests?”

Taken together, the latest steps amount to an escalating effort to dislodge Powell from his position as chairman before his term ends next May. It’s an unprecedented attempt to reshape the Federal Reserve’s traditional role as an autonomous arbiter of US monetary policy.

If successful, Trump will have expanded his influence to yet another corner of American government that was once seen as beyond the reach of political pressure, but he will have also jeopardized the independence that has made the central bank a foundational player in the US economy.

On Wednesday, Trump said Powell “should resign immediately” so “we should get somebody in there that’s going to lower interest rates.” He suggested that he’d rather have Scott Bessent, his Treasury secretary, as a replacement.

Powell has resisted Trump’s pressure, largely out of concern that Trump’s tariff plans could increase costs for American consumers. If rates are lowered too aggressively, it could lead to a resurgence of inflation.

But Trump insists that inflation is no longer a problem, and a rate cut would help make mortgages, auto loans and other forms of consumer debt cheaper. Trump has also said it would allow the US government to finance its debt more cheaply, a pressing concern as legislation signed by the president is poised to increase the federal deficit by extending tax cuts.

“LOWER THE RATE!!!” Trump wrote on social media on Thursday as he continued a near-daily drumbeat of criticism.

However, there’s no guarantee that financial markets will reduce rates on government debt even if the Fed bows to Trump’s wishes. Such a situation could lead to higher interest costs for consumers — a reminder of how monetary missteps may backfire.

Powell was nominated to the Federal Reserve Board of Governors by President Barack Obama, then made chairman by Trump during his first term. But in his second term, Trump turned Powell — who has sought to avoid politics and refrains from responding directly to the president— into one of his primary antagonists.

Trump has said that he wouldn’t directly oust Powell — “I don’t know why it would be so bad, but I’m not going to fire him,” he said last month. The Supreme Court said in May that it could block such a step.

However, Trump's allies have found other ways to make Powell uncomfortable.

Bill Pulte, the Trump-appointed director of the Federal Housing Finance Agency, also accused Powell of lying to Congress about the renovations.

“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause,’” he said last week. Pulte said the situation “stinks to high heaven.”

Vought, in his own letter, said the called the initial renovation plans featuring rooftop terrace gardens, VIP dining rooms and premium marble an “ostentatious overhaul.” Vought also suggested that Powell misled Congress by saying the headquarters had never had a serious renovation, saying that an update to its roof and building systems that was completed in 2003 counts as a “comprehensive” renovation.

Fed officials did not respond to an email seeking a response to the letter. Powell said in Senate testimony last month that some of the elements in the 2021 plan such as the dining rooms and rooftop terraces are no longer part of the project for the 90-year-old Marriner S. Eccles Building.

The debate over the renovation could set up a legal battle between the White House and the Fed, which under the law is allowed to use its own judgment to establish “suitable” and “adequate” quarters for its operations.

Sung Won Sohn, a finance and economics professor at Loyola-Marymount University, said “it’s good that the central bank budget is coming under review and scrutiny.”

However, he warned against using such issues to challenge the Fed’s independence. If that’s compromised, he said, it’s “bad for the economy, that’s bad for inflation expectations and therefore long term inflation.”