NEOM and DataVolt to Build Saudi Arabia’s First Net-Zero AI Factory

ByHema

Feb 12, 2025 #NEOM, #Oxagon
NEOMImage Courtesy: ACUD

A Major Step Towards Sustainable AI

NEOM has partnered with DataVolt to build the first net-zero AI factory in Saudi Arabia. This new facility will be located in Oxagon, NEOM’s industrial hub. The goal is to create an advanced data center that runs entirely on renewable energy. This move highlights Saudi Arabia’s commitment to both technology and sustainability.

A $5 Billion Investment in Green AI

DataVolt is investing $5 billion in the first phase of this project. The factory will have a power capacity of 1.5 gigawatts and is expected to be operational by 2028. The facility will use energy-efficient systems to reduce environmental impact while meeting the growing demand for AI computing power.

NEOM Tackling the Energy Problem in AI

AI and data centers consume a massive amount of electricity. According to the International Energy Agency (IEA), data centers use between 1% to 1.3% of global electricity. With the rise of AI, this number is expected to increase significantly. NEOM’s partnership with DataVolt aims to solve this challenge by providing a sustainable, high-performance computing infrastructure.

Leadership Speaks on the Project

Vishal Wanchoo, CEO of Oxagon, emphasized the importance of this collaboration. He stated that NEOM is helping Saudi Arabia lead the energy transition. By providing businesses with clean energy and technology solutions, Oxagon will create an ecosystem where industries can thrive without harming the environment.

Rajit Nanda, CEO of DataVolt, also expressed enthusiasm. He highlighted Saudi Arabia’s strategic location and renewable energy resources as key advantages. He believes this project will turn the Kingdom into a major player in digital infrastructure.

How NEOM Will Support DataVolt

NEOM will provide the land and infrastructure for DataVolt’s AI factory. The facility will be designed for maximum energy efficiency, using advanced cooling technology to reduce power consumption. By operating entirely on renewable energy, this AI factory will set a new global standard for sustainable data centers.

Why Oxagon is the Perfect Location

Oxagon is a prime spot for this high-tech facility. Its location on the Red Sea provides access to undersea cables, ensuring strong internet connectivity. NEOM also offers cost-effective renewable energy and green hydrogen, making it an ideal place for a large-scale AI factory.

NEOM Supporting Saudi Arabia’s Vision 2030

This project aligns with Saudi Arabia’s Vision 2030, which focuses on economic diversification and innovation. By building the world’s first net-zero AI factory, NEOM is positioning Saudi Arabia as a leader in both AI and green technology. This initiative will not only boost the economy but also set a precedent for sustainable development worldwide.

 

Also Read:

Azizi Nearly Sells Out Luxury Homes in Dubai

Dubai Duty Free Launches Innovative Shopping Experience