Neom and DataVolt have signed an investment agreement to build a 1.5GW AI data center in Oxagon for $5 billion. The initial investment has been made by DataVolt and is expected to cater for phase 1 of the 1.5GW data center development in Oxagon.

The first phase of construction will be completed by 2028, marking the data center operational. Also included in the agreement is that the development land will be provided by Neom’s Oxagon. The providence is in form of a lease to DataVolt. Also pulled from Neom’s end will be the operator and the required infrastructural support.

Oxagon was presumably selected because of its strategic location on the Red Sea coast. This will allow for more easier and efficient connectivity to undersea data cables.

Also as pros for Oxagon’s selection to house the 1.5GW AI data center is its features. Oxagon provides “cost-competitive” renewable energy, green hydrogen, and is seeing a rapid industrial growth according to Neom. This makes Oxagon the ideal location for the $5 billion AI data center project by Neom and DataVolt.

The first “truly” sustainable net zero AI data center in the region

The latest $5 billion handshake between Neom and DataVolt is paramount in the Kingdom’s push for growing digital infrastructure and a sustainable, data driven economy. Once seen to completion, the AI data center in Oxagon will strengthen the Kingdom’s position as the “region’s leading data and AI hub”.

The 1.5GW data factory will house a diverse set of computing power and sustainable architectures. These are expected to intrinsically fill loop holes seen in traditional data centers – especially with “energy efficiency”.

To put into perspective, the International Energy Agency (IEA) figures show electricity consumption by data centers to be 1-1.3% globally. With current tech trends – from AI to the data economy, this figure is expected to rise at the expense of the environment.

Talk on the $5 billion data center

Rajit Nanda, CEO of DataVolt remarked of the project as a “significant milestone” in “advancing the Kingdom’s leadership as a digital powerhouse in the region.” Also added to the commentary by the CEO of Oxagon, Vishal Wanchoo, is that the 1.5GW AI data center in Oxagon puts the Kingdom as part of the face of global energy transition.

Neom is a region taking shape in Saudi Arabia. It has been revered by its founders, drivers, and stakeholders as being at the forefront of arcological sustainability. Included in the development is The Line, Trojena, Oxagon, and the recently opened Sindalah.