Oxagon discloses capacity of data centre phase
29 April 2025
Register for MEED’s 14-day trial access
The region's first planned net-zero and artificial intelligence (AI)-powered data centre project in Oxagon, the industrial cluster of Saudi gigaproject Neom, will have an initial capacity of 300MW.
The first phase of the data centre facility, which local data centre developer DataVolt will own and operate, is expected to begin operations in 2028.
"Over time, the data centre’s total capacity is expected to reach 1.5GW, supporting anticipated local and global demand," Oxagon announced.
It added that the projected output will place the kingdom among a "select group of countries boasting operational capacities of 1GW or more, comparable to those in the US, China, Japan, Australia and India".
The project is estimated to require an investment of several billion dollars.
The initial 300MW facility’s modular design will ensure scalability to meet future demand in terms of information technology infrastructure, rack power density and cooling systems, said Oxagon.
The DataVolt facility will be located on a 350,000 square-metre area and will ultimately be powered by renewable energy, primarily from solar and wind sources within the Neom region.
The current plan entails deploying large-scale battery storage for system stability and gas turbines for redundancy, "enabling up to 48 hours of autonomous operation with green hydrogen fuel, if needed".
According to Oxagon, these energy solutions will enable the facility to meet the enormous power demands of AI workloads with Tier 3 levels of redundancy and availability while maintaining net-zero emissions during operations.
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.
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.
Photo credit: Oxagon
Exclusive from Meed
-
-
Chinese firm wins Dubai drainage contract20 July 2026
-
-
Abu Dhabi launches E20 highway expansion project20 July 2026
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Consultants submit bids for Saudi Arabia’s GCC rail link20 July 2026

Consultants submitted proposals on 14 July for a contract to provide design consultancy services for the Saudi Arabian section of the GCC railway network, which is intended to link all six member states.
Saudi Arabia Railways (SAR) issued the tender on 7 May, MEED previously reported.
The tender covers the concept, preliminary and issued for construction design stages. SAR requires the selected consultant to review, update and complete the existing preliminary design.
The consultants who submitted bids include:
- Atkins with Khatib & Alami
- DeutscheBahn with ARX
- Egis with Sener
- Idom with Dal al-Handasah
- Systra
Saudi Arabia’s section of the railway will start at Al-Khafji in the Eastern Province, near the border with Kuwait, and end at Al-Batha, on Saudi Arabia’s border with the UAE. The route length in Saudi Arabia will be about 672 kilometres (km).
The railway will interface with the Kuwait National Rail Road (KNRR) project on the Kuwaiti side. Last year, MEED exclusively reported that the KNRR design contract was awarded to Turkiye’s Proyapi Muhendislik ve Musavirlik Anonim Sirketi.
The KNRR forms part of the wider GCC rail network. GCC railway projects have gained renewed momentum since the six member states signed the Al-Ula Declaration in January 2021.
In October last year, Qatar’s cabinet approved a draft agreement paving the way for a railway link between Qatar and Saudi Arabia as part of the GCC railway network.
GCC railway line
Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to span about 2,186km in total.
The route length within each member state is as follows: 684km in the UAE, 672km in Saudi Arabia, 306km in Oman, 283km in Qatar, 145km in Kuwait and 36km in Bahrain.
The railway is designed for passenger trains travelling at 220km/h and freight trains operating at 80-120km/h.
With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17705320/main.gif -
Chinese firm wins Dubai drainage contract20 July 2026
China State Construction Engineering Corporation (CSCEC) has announced it has won a contract to deliver a stormwater drainage pipeline package under Dubai Municipality’s Tasreef programme.
The contract is for the TF-15-C2 stormwater drainage network project located along Umm Suqeim Road in the Al-Barsha and Al-Quoz areas of Dubai.
MEED exclusively revealed in May that the contractor had been selected for the engineering, procurement and construction (EPC) contract. The project is estimated to cost $162m.
The scope of work includes the construction of about 20 kilometres of new stormwater pipelines, together with associated inspection and intake manholes. The project is located west of the Dubai Canal and will connect the Al-Quoz 3 and Al-Quoz 4 industrial areas with Al-Quoz 1.
It is being delivered as part of Dubai’s Tasreef strategic plan, which supports the Dubai 2040 Urban Master Plan. Once completed, the new drainage infrastructure is expected to improve the emirate’s stormwater network, increase flood protection and enhance the resilience of Dubai’s infrastructure.
In February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.
These include a separate contract awarded to CSCEC for the TF-11-C1 stormwater drainage project in the Dubailand area.
Also in February, Dubai Municipality invited consultants to qualify for a contract to supervise construction on the TF-15-C2 stormwater drainage projects along with two other projects (TF-13-C1 and TF-16-C1) under the Tasreef programme.
According to a source, a consultant has yet to be appointed.
TF-16-C1 involves upgrading and rehabilitating the stormwater system east of the Dubai Canal, while TF-13-C1 involves building a water pipeline stormwater drainage system at Al-Marmoum, Al-Qudra and Al-Yalayis 2 & 3.
Bids are currently under evaluation for the EPC contracts for both projects.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17705058/main.jpg -
Dubai receives eight bids for Hassyan SWRO pipeline contract20 July 2026
Register for MEED’s 14-day trial access
Eight contractors have made offers for a contract to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the Hassyan seawater reverse osmosis (SWRO) phase two network in Dubai.
The contract relates to project one of the Hassyan pipeline network expansion being undertaken by state utility Dubai Electricity & Water Authority (Dewa).
Local firm Binladin Contracting Group submitted the lowest offer of AED335.92m ($91.5m), according to results published by the utility.
The other bids were:
- Green Oasis General Contracting (UAE) – AED345.00m ($93.9m)
- Al-Nasr Contracting (UAE) – AED391.54m ($106.6m)
- Wade Adams Contracting (UAE) – AED393.80m ($107.2m)
- RMB Contracting (UAE) – AED437.96m ($119.3m)
- Tristar Engineering & Construction (UAE) – AED441.55m ($120.2m)
- Shapoorji Pallonji Mideast (UAE/India) – AED451.47m ($122.9m)
- Gulf Petrochemical Services Trading (UAE) – AED495.20m ($134.8m)
RMB also submitted a conditional discounted offer of AED427.02m ($116.3m). Three companies submitted regret notices, while one offer was rejected after no valid commercial offer was received.
In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.
Dewa has two other contracts out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.
Project two was tendered on 22 January and has a bid submission deadline of 21 July. Project three was tendered on 26 January and has a bid submission deadline of 29 July.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17704940/main.jpg -
Abu Dhabi launches E20 highway expansion project20 July 2026
Abu Dhabi’s Department of Municipalities and Transport (DMT) has announced the E20 highway expansion project.
The scheme covers widening the main carriageway from three to five lanes, constructing more than 10 kilometres (km) of new ramps and loops, and building four bridges.
Works also include 1.5km of internal roads and the addition of eight signalised junctions across Khalifa City and the Zayed International airport precinct.
The project includes utility works, comprising 62km of stormwater drainage, 37km of irrigation networks and the installation of 485 streetlights.
The E20 expansion is one of the major infrastructure schemes being overseen by DMT in Abu Dhabi.
Separately, DMT is evaluating bids for a design-and-build contract to construct two bridges serving Hudayriyat Island in Abu Dhabi.
The scope includes a two-lane bridge connecting 32nd Street to Shakhbout Bin Sultan Street, and a single-lane bridge on 8th Street. It also includes upgrades to signalised intersections.
Shakhbout Bin Sultan Street is a two-way road with three lanes in each direction, providing access to and from Hudayriyat Island.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17704696/main.jpg -
Firms given more time for Mid Island Parkway prequalifications20 July 2026

Abu Dhabi’s Modon Infrastructure has extended the deadline to 31 July for firms to submit expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership (PPP).
The previous deadline was 15 July. MEED understands the prequalification notice was issued in June, following Modon Infrastructure’s invitation in May for firms to register their interest.
Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.
Phase two of the MIPP involves the construction of about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.
The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.
The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.
Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.
Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.
Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.
It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17704765/main.jpg