1.5GW AI Data Center to be built in Neom’s Oxagon for $5 billion

 

Neom and DataVolt sign agreement to construct a 1.5GW AI data center

Neom and DataVolt have entered into an investment agreement to construct a 1.5GW AI data center in Oxagon, with a budget capped at $5 billion. This project will solidify Saudi Arabia's position as a leading digital powerhouse in the region. 

The agreement sees DataVolt making the initial investment to fund Phase 1 of the data center's development. The first phase is slated for completion by 2028, when the data center will begin operations. Neom’s Oxagon will provide the land for the development through a lease arrangement with DataVolt. In addition, Neom will contribute the operational team and the necessary infrastructure support.

Oxagon's strategic location along the Red Sea coast was a key factor in its selection. This location facilitates efficient connectivity to undersea data cables, an important advantage for a data center of this magnitude.

 

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Oxagon is also known for its "cost-competitive" renewable energy, green hydrogen, and rapid industrial growth, making it an ideal home for this $5 billion AI data center. These factors, according to Neom, make the region particularly suitable for such a major development.

The project will be the first truly sustainable, net-zero AI data center in the region. This milestone is critical to Saudi Arabia's efforts to enhance its digital infrastructure and foster a data-driven, sustainable economy. Upon completion, the data center will further solidify the Kingdom’s status as the leading hub for data and AI in the region.

The 1.5GW facility will incorporate a diverse range of computing power and sustainable technologies, addressing some of the inefficiencies seen in traditional data centers, particularly regarding energy consumption.

The International Energy Agency (IEA) reports that data centers globally consume between 1% and 1.3% of electricity, a figure expected to rise with growing technological trends such as AI. The development of energy-efficient AI data centers like the one in Oxagon aims to reduce the environmental impact of this trend.

 

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Rajit Nanda, CEO of DataVolt, called the project a "significant milestone" in advancing Saudi Arabia’s leadership as a digital powerhouse. Vishal Wanchoo, CEO of Oxagon, echoed this sentiment, noting that the project positions the Kingdom at the forefront of the global energy transition.

Neom, a region being developed in Saudi Arabia, is recognized for its commitment to ecological sustainability. Its ambitious projects include The Line, Trojena, Oxagon, and the recently inaugurated Sindalah.

Source: https://constructionreviewonline.com/