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Neom and DataVolt announce $5bn data centre project

11 February 2025

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Saudi gigaproject developer Neom and Saudi Arabia-based DataVolt, a developer, investor and operator of data centres, have signed an agreement to develop a major data centre infrastructure in Oxagon, Neom’s industrial cluster.

Funded by an investment of about $5bn, the 1.5GW first phase of the project is expected to be operational by 2028.

According to Neom, the aim is for the facility to be entirely powered by renewable energy, providing a fully integrated, end-to-end data centre solution.

The project will utilise advanced cooling technologies and is designed to operate at net zero carbon emissions, addressing the global challenges of power availability and the carbon footprint posed by data centres.

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

Vishal Wanchoo, Oxagon's chief executive, said: “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 (artificial intelligence) workload to come on-stream in [Saudi Arabia], along with the necessary computing power for regional and global impact.”

Rajit Nanda, CEO of DataVolt, noted Saudi Arabia’s strategic location and abundant green energy resources, which “aligns perfectly with DataVolt’s mission in providing state-of-the-art sustainable data centres”.

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

Neom added: “Oxagon’s strategic location on the Red Sea coast, combined with access to sub-sea cables providing fibre connectivity, alongside cost-competitive renewable energy, green hydrogen and a rapidly expanding industrial ecosystem, makes it the ideal location for DataVolt to develop a large-scale green AI factory.”

Founded in 2023, DataVolt has previously announced a plan to invest $5bn in developing data centres in Saudi Arabia, without specifying potential locations.

DataVolt is a wholly owned subsidiary of Saudi public-private partnership-focused developer and investor Vision Invest.

Utility developers Acwa Power and Miahona Company are the other two companies comprising Vision Invest's portfolio.

Former Acwa Power chief executive Paddy Padmanathan is DataVolt's chairman, while DataVolt's CEO Nanda is Acwa Power's former chief investment officer.

Another former senior executive at Acwa Power, Andrea Lovato, is DataVolt's chief future and solutions officer.

Saudi Arabia aims to be a digital hub and a key player in AI, both of which require enormous cloud computing-based resources.

According to the International Energy Agency, data centres currently consume 1%-1.3% of global electricity demand. Advancements in generative AI mean that power consumption is expected to grow exponentially in the next decade.

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> GIGAPROJECTS INDEX: Gigaproject spending finds a level
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Jennifer Aguinaldo

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