Oxagon CEO says Saudi Arabia is testing scalable, next-generation energy solutions

 

Oxagon CEO gives salient features of modern energy solutions offered by Saudi Arabia 

Around the world, governments are struggling to achieve the perfect energy balance — systems that are secure, affordable, and sustainable. Meeting two of these goals often means sacrificing the third, a complex challenge widely known as the global energy “trilemma.”

In an exclusive piece for Construction Week, Oxagon CEO  Vishal Wanchoo argues that developed nations pursuing aggressive decarbonization goals often face high costs for backup systems to offset the intermittency of renewables. Meanwhile, fossil fuels remain the most affordable option for many developing countries, making climate targets seem out of reach. Traditional, centralized grids built around fossil fuels also struggle to integrate renewables at scale, and older cities face further hurdles due to legacy infrastructure and limited space for innovation.

Traditional, centralized grids built around fossil fuels also struggle to integrate renewables at scale, and older cities face further hurdles due to legacy infrastructure and limited space for innovation.

To overcome these barriers, what’s needed is a location with the natural resources, land, and flexibility to design a new energy model from the ground up — one that could later be replicated elsewhere.

 

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That’s precisely what NEOM, Saudi Arabia’s 26,500-square-kilometre sustainable region under development in the northwest, aims to achieve. Through Oxagon — NEOM’s advanced industrial and port city — and Enowa, its energy and water subsidiary, the project is creating a testbed for scalable, next-generation energy solutions.

Harnessing nature’s strengths

NEOM sits atop one of the world’s richest renewable basins, with average wind speeds of 10.3 metres per second and solar potential of 20 megajoules per square metre. This unique solar-wind balance supports round-the-clock clean energy generation when combined with advanced storage technologies, addressing the reliability challenge that has long hindered renewable adoption.

Building a digital-first energy grid

Because NEOM is being built from scratch, it can integrate digital infrastructure at every level. Enowa’s Digital Energy Platform serves as the “nervous system” of the grid, connecting energy assets in real time for data-driven management. This system continuously balances supply and demand, maximising efficiency and proving that clean energy can also be consistent and dependable.

Pioneering green hydrogen

One of NEOM’s flagship initiatives, the NEOM Green Hydrogen Company — a joint venture between ACWA Power and Air Products — is nearing completion. About 80% of construction is finished across its wind, solar, and production facilities. Once operational, it will become the world’s largest green hydrogen plant, producing 600 tonnes of hydrogen daily for global export and preventing an estimated 5 million tonnes of CO₂ emissions each year.

Powering the AI revolution sustainably

As artificial intelligence drives exponential demand for data centers, NEOM is positioning itself at the forefront of sustainable digital infrastructure. In Oxagon, DataVolt is developing a low-carbon AI data center powered entirely by renewables and cooled using the Red Sea’s natural temperature gradient. With a target Power Usage Effectiveness (PUE) below 1.20, it will be among the most efficient facilities worldwide — showing that even energy-intensive technologies can operate responsibly.

 

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Keeping Energy Affordable

Affordability remains a key consideration. By embedding renewable principles into its master plan and placing generation close to demand hubs, NEOM reduces transmission losses and boosts efficiency. The Port of NEOM already exemplifies this strategy, cutting emissions by roughly one tonne of CO₂ per container compared to conventional shipping methods through its use of automated electric systems.

Sharing Lessons with the World

NEOM’s mission extends beyond its borders. The region’s combination of scale, renewable resources, and freedom from outdated infrastructure enables it to experiment and refine models that can guide global energy transitions. These insights align closely with Saudi Vision 2030, supporting the Kingdom’s broader diversification and sustainability objectives.

“We believe the lessons learned here can then be adapted and implemented by cities wrestling with their own versions of the energy trilemma,” says Vishal Wanchoo, CEO of Oxagon. “The renewable systems, digital platforms, and integration strategies we’re developing can be scaled for urban districts, adjusted for different climates, and applied within existing grids.”

NEOM’s ultimate goal is to demonstrate that energy systems can be clean, affordable, and reliable — not just for a new city in Saudi Arabia, but for communities worldwide seeking to power a sustainable future.

Source: Construction Week