NEOM’s Oxagon nearing deal for one-gigawatt AI data center

 

NEOM’s Oxagon to set up data center run on renewable energy   

Oxagon, NEOM’s industrial hub and the home of Saudi Arabia’s $8.5 billion green hydrogen project, is nearing a deal for a one-gigawatt AI data center, according to CEO Vishal Wanchoo. The first phase, a 400-megawatt segment, could be finalized by the end of this year. Although Wanchoo did not reveal the potential partner, he noted that the data center will run on renewable energy and backup batteries, a departure from the fossil-fuel-based facilities prevalent in the region. “They’re exploring advanced cooling technologies to reduce energy use,” Wanchoo shared at the Future Investment Initiative in Riyadh.

In parallel, Oxagon is enhancing its port capacity, targeting 1.5 million TEUs by 2026, with expansion plans to reach 12 million TEUs after 2030, approaching the scale of Dubai’s Jebel Ali Port. Saudi Arabia has committed 15 billion riyals ($4 billion) to the port, which can accommodate large vessels and support construction efforts for NEOM’s The Line.

 

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Future Plans and Resident Projections

By 2030, Oxagon is expected to house 25,000 residents, down from previous estimates of 90,000. Offshore expansion plans, including a potential floating manufacturing district, are on hold until the port and onshore manufacturing infrastructures are established. “Economic feasibility is crucial,” said Wanchoo, adding that Oxagon is observing smaller-scale city models like South Korea’s Busan for guidance.

The city is also in talks with renewable energy companies to establish production facilities for solar and wind components. The Public Investment Fund and Vision Vest — owned by Al Muhaidib Group and Abunayyan Holding — are in advanced discussions to build these factories. China’s Envision Energy Co. has already begun supplying turbines and blades to NEOM and will contribute to Oxagon’s future factories.

 

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Residential Development and Expansion

Oxagon’s first residential complex, Oxagon Hive, opens next week and is set to welcome 500 residents by year-end. Using modular 3D volumetric construction — with factory-produced units shipped from Malaysia and assembled on-site — the complex will eventually accommodate 3,000 residents. Discussions are underway with companies interested in establishing modular manufacturing plants within Oxagon.

Source: Semafor