NEOM and DataVolt have signed an agreement to develop a $5 billion green data centre in Saudi Arabia’s Oxagon region, marking a major step in the Kingdom’s push to become a regional digital and AI hub. The facility, expected to be operational by 2028, aims to address the global environmental challenges posed by conventional data centres and power the region’s AI ambitions.
The project will be built in phases, with a 1.5-gigawatt data centre factory leveraging energy-efficient architectures and renewable energy. NEOM’s Oxagon will lease the land for the development and provide infrastructure support, including access to renewable energy and sub-sea cable connectivity. The facility will incorporate advanced cooling systems and is designed to operate at net zero carbon emissions.
According to the International Energy Agency, data centres currently account for 1% to 1.3% of global electricity demand, a figure expected to rise significantly due to AI advancements. The NEOM-DataVolt project aims to mitigate this by delivering a fully renewable-powered data centre equipped to handle AI workloads at scale, serving both regional and global markets.
