Neom, the sustainable region taking shape in north-west Saudi Arabia, has signed a landmark agreement with DataVolt, a Saudi-based international developer, investor and operator of datacentres, marking a significant step towards realising the Kingdom’s ambition to build a sustainable, data-driven economy.
The facility aligns with Oxagon’s broader ambition to create a clean industrial ecosystem powered by renewable energy. It will integrate a wide range of computing densities and energy-efficient architectures designed to support the next wave of artificial intelligence (AI) workloads, particularly generative AI (GenAI), while addressing the mounting environmental challenges posed by traditional datacentres.
According to the International Energy Agency, datacentres currently consume between 1% and 1.3% of global electricity demand. With the rapid advancement of GenAI models and high-performance computing, that figure is expected to rise sharply over the coming decade. Hyperscale facilities supporting AI training and inference require vast amounts of power and cooling, intensifying concerns over grid strain, carbon emissions and long-term sustainability.
“The Kingdom is at the forefront of the global energy transition. At Oxagon, we are accelerating the development of a renewable energy industrial ecosystem that is poised to power businesses with green energy and technology solutions. 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 workload to come on-stream in KSA [the Kingdom of Saudi Arabia], along with the necessary computing power for regional and global impact,” said Vishal Wanchoo, CEO of Oxagon.
This agreement with Neom and Oxagon underscores our unwavering commitment to support the Kingdom’s vision of becoming a regional digital and AI hub. This project marks a significant milestone in advancing the Kingdom’s leadership as a digital powerhouse in the region Rajit Nanda, DataVolt
Under the agreement, Oxagon will lease land to DataVolt and provide core infrastructure support. The ambition is for the facility to operate at net zero, powered entirely by renewable energy. Advanced cooling technologies will be deployed to improve efficiency and reduce water and energy consumption, tackling one of the most pressing operational challenges in hyperscale computing.
“This agreement with Neom and Oxagon underscores our unwavering commitment to support the Kingdom’s vision of becoming a regional digital and AI hub,” said Rajit Nanda, CEO of DataVolt. “The Kingdom’s strategic location, coupled with its abundant green energy resources, aligns perfectly with DataVolt’s mission in providing state-of-the-art sustainable datacentres. This project marks a significant milestone in advancing the Kingdom’s leadership as a digital powerhouse in the region.”
Oxagon’s strategic position on the Red Sea coast enhances the project’s global connectivity credentials. Access to subsea fibre-optic cables ensures low-latency international data transmission. At the same time, proximity to renewable energy generation, green hydrogen projects and a rapidly expanding industrial base strengthen its appeal as a global AI infrastructure hub.
The DataVolt agreement sits within a much broader national strategy. Saudi Arabia has made significant investments in artificial intelligence, digital infrastructure and smart city development as part of its long-term economic transformation agenda. Central to this vision is Neom, including flagship developments such as The Line and Oxagon, which are designed as digitally native environments.
Fady Sleiman, chief information and digital officer in Saudi Arabia, argues that the Kingdom’s competitive advantage lies in its systemic approach. “What sets Saudi Arabia apart in the global AI landscape is the integration mindset,” he said. “AI is not being treated as a technology layer added to existing systems. It is being embedded into the design of new cities, government services, industrial operations and economic infrastructure.”
This philosophy is evident in Neom’s cognitive city architecture, where data platforms, sensors, edge computing and AI engines are designed as foundational infrastructure. “These are not isolated pilots – they are interconnected elements of a unified digital strategy,” said Sleiman.
“When AI is designed into infrastructure from the beginning rather than retrofitted later, the performance advantage over legacy-first approaches is exponential,” he added. “Saudi Arabia is demonstrating what an AI-first nation looks like in practice, and global technology leaders and policymakers are taking note. The implications for competitiveness, innovation and economic transformation are profound.”
