NEOM and DataVolt to Build US$5bn Net Zero AI Factory

The sustainable data centre operator DataVolt has signed an agreement with NEOM to design and develop The Kingdom of Saudi Arabia’s first sustainable net zero AI factory campus in Oxagon.

DataVolt is initially investing US$5bn into the project, which will fund the first phase of the factory’s development. The facility is expected to be operational by 2028.

Such an agreement marks a milestone for both companies, as Saudi Arabia continues to expand its digital infrastructure and cement its position as a leading data hub in the Middle East. 

Vishal Wanchoo, CEO of Oxagon, shares: “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 journey to achieving net zero

NEOM refers to the sustainable region in northwest Saudi Arabia. It is now working with DataVolt to realise the country’s goal to become a more sustainable and data-driven economy.

Aligning with Oxagon’s ambition, the 1.5 gigawatt (GW) factory will integrate a wide range of computing densities and energy-efficient architectures to address the global challenges posed by traditional data centres.

This announcement is timely, given the International Energy Agency’s (IEA) analysis that data centres currently consume between 1-2% of the world’s electricity. As emerging technologies like generative AI (Gen AI) remain in high demand, power consumption will inevitably grow across the data centre industry over the next decade. 

Given that data centres demand large quantities of energy, power and water in order to run, there is a widespread call across the industry for more sustainable strategies and solutions.

Vishal adds: “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.”

Integrated solutions to address carbon footprint

As part of the agreement, Oxagon will lease DataVolt the land for the development of the facility and provide the data centre operator with infrastructure support. 

The end goal of the facility is for it to be powered solely with renewable energy, thereby providing a fully integrated end-to-end data centre solution. With this in mind, the project will use advanced cooling technologies and will be designed to operate at net zero. Both companies hope this will address the global challenge of power availability and the carbon footprint of data centres in the region.

Oxagon has been strategically located along the Red Sea coast, offering it access to subsea cables that provide fibre connectivity, in addition to competitive renewable energy, green hydrogen and an expanding industrial ecosystem. 

DataVolt states this makes Oxagon the perfect location for it to develop a large-scale green AI factory.

Rajit Nanda, CEO of DataVolt, adds: “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.”

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