NEOM has partnered with Saudi based developer, DataVolt to build a major $5 Billion AI Powered Data Centre in NEOM Oxagon, Saudi Arabia.
With a capacity of 1.5 gigawatts, the facility is due to feature high density computing and energy-efficient infrastructure fully powered by renewable energy.
Its first phase will launch in 2028 and aims to support Saudi Arabia’s leadership in AI, aligning with Vision 2030 goals.
Announcing NEOM’s AI Data Center
The announcement of NEOM’s AI-powered data center is a pivotal moment in Saudi Arabia’s technological advancement and sustainable development journey.
This ambitious project, backed by a staggering $5 billion initial investment, is set to revolutionize the landscape of data processing and artificial intelligence in the region and beyond.
The partnership was formally announced during the LEAP Tech Conference 2025, a testament to its significance in the tech world. This high-profile unveiling shows the project’s potential to drive Saudi Arabia’s digital transformation and strengthen its position as a global hub for advanced technologies.
Unpacking the $5 Billion Investment
The $5 billion investment is the first phase of what is envisioned to be a multi-stage development process. This initial funding is expected to cover the construction of core infrastructure, the installation of advanced computing systems, and the implementation of cutting-edge AI technologies.
The project can adapt to ever changing technological needs and market demands by adopting a phased approach. This flexibility allows for implementing the latest innovations as the facility expands, ensuring it remains at the front of AI and data processing capabilities.
Oxagon AI Powerd Data Center
At the heart of NEOM’s AI data center are diverse cutting-edge technologies and infrastructure designed to push the boundaries of data processing and artificial intelligence.
High Density Computing Capabilities
The data center is designed to handle many computing densities, handling diverse needs of AI and machine learning applications. This flexibility allows for efficiently handling both data-intensive tasks and complex computational processes.
The high-density computing infrastructure is expected to support advanced AI models, deep learning algorithms, and large-scale data analytics.
This capability positions the facility as a powerhouse for AI research and development, capable of tackling some of the most challenging computational problems in science and industry.
Energy Efficient Architecture
One of the most innovative aspects of the data center is its energy-efficient architecture. Traditional data centers are notorious for their high energy consumption, but this facility aims to set new standards for energy efficiency.
The design incorporates advanced cooling technologies and optimized power distribution systems to minimize energy waste. These innovations reduce the facility’s environmental impact and contribute to its cost-effectiveness and long-term sustainability.
AI-Powered Operations
True to its purpose, the data center will leverage AI technologies for its operations and management. AI systems will be employed to optimize resource allocation, predict maintenance needs, and enhance overall operational efficiency.
This AI-driven approach to data center management represents a significant leap forward in the industry, potentially setting new benchmarks for performance and reliability in large-scale computing facilities.
100% Renewable Energy Commitment
The facility will leverage a combination of solar, wind, and potentially other renewable energy sources available in the region. This approach not only minimizes the carbon footprint of the data center but also sets a new standard for what is possible in terms of sustainable large-scale computing.
The data center’s design includes comprehensive water conservation measures in a region where water scarcity is a pressing concern. This may involve closed-loop cooling systems, water recycling technologies, and smart water management systems.
By minimizing water usage and implementing efficient recycling processes, the facility aims to set new benchmarks for water conservation in the data center industry.
NEOM Oxagon
Oxagon, NEOM’s hub for advanced and clean industries, is set to become the home of this groundbreaking AI data center.
Strategic Location and Connectivity
Situated on the Red Sea coast, Oxagon boasts a strategic location that offers numerous advantages for a large-scale data center. Its coastal position provides easy access to submarine fiber-optic cables, ensuring high-speed connectivity to global networks.
This connectivity is crucial for a data center that aims to serve local needs and position itself as a regional and international hub for data processing and AI operations.
The proximity to major shipping routes also facilitates the easy transport of equipment and materials needed for the construction and maintenance of the facility. This logistical advantage is expected to streamline the development process and contribute to the operational efficiency of the data center.
Sustainable Infrastructure
One of the most compelling aspects of Oxagon is its commitment to sustainability and clean energy. The industrial hub is designed to operate on 100% renewable energy, aligning perfectly with the goals of the AI data center project.
This sustainable infrastructure includes access to low-cost renewable energy sources and green hydrogen, crucial for powering a large-scale, energy-intensive facility like an AI data center.
Aligning with Vision 2030
The AI data center project is not isolated but a key component of Saudi Arabia’s ambitious Vision 2030 plan. This national strategy aims to diversify the Kingdom’s economy, reduce its dependence on oil, and position Saudi Arabia as a global leader in various sectors, including technology and innovation.
Moreover, such an advanced facility is likely to attract businesses and services, further boosting economic activity in the area through new jobs. This effect could contribute substantially to the diversification of Saudi Arabia’s economy, a key goal of the Vision 2030 plan.
NEOM’s AI Revolution
The announcement of NEOM’s $5 billion AI-powered data center marks a significant milestone in Saudi Arabia’s journey toward technological leadership and sustainable development.
By combining cutting-edge technology with a steadfast commitment to sustainability, the data center is expected to set new global standards for energy efficiency and environmental responsibility in the tech industry.
More Innovative Project by NEOM
World’s First Flying Electric Ships
NEOM is due to introduce the world’s first flying electric ships from Candela, a leading electric vessel company based in Stockholm.
The Candela P-12, a type of flying electric hydrofoil ship, will skim across the beautiful Red Sea at 25 knots using hydrofoils.
These ships are expected to transform water travel with zero emissions, ensuring minimal environmental impact and extended travel ranges.
NEOM Investment into Pony.AI
NEOM is investing $100 million into Pony.ai, the autonomous driving technology firm, through The Neom Investment Fund to advance and produce autonomous vehicles for NEOM and major markets in the Middle East.
With this agreement, NEOM and Pony.ai will work together to create, build, and provide autonomous driving services, innovative vehicles, and smart vehicle infrastructure throughout NEOM and key Middle Eastern markets.
NEOM has partnered with REGENT, a US company making electric sea gliders, to support its goal of becoming a carbon-free community and achieving sustainable transportation. These sea gliders mix the speed of aircraft with the ease of boats.
This investment, made through the NEOM Investment Fund (NIF), highlights NEOM’s dedication to leading in sustainable mobility and advancing Saudi Arabia’s Vision 2030.
Keep Reading: NEOM to Welcome The World’s First Flying Electric Ships to Mega City
