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Saudi Arabia’s Neom signs deal to build $5bn data centre in Oxagon
11 February 2025
Digital render of how the Port of Neom and Oxagon will look (Image: Neom)
The company in charge of Saudi Arabia’s special economic zone of Neom has signed a deal with a developer to build a US$5 billion data centre in Oxagon.
Oxagon is a “reimagined” industrial city in Neom that promises to embed robotics, automation and artificial intelligence in its infrastructure, all powered by sustainable energy.
Developer Datavolt has signed an agreement with Neom to build the 1.5GW data centre, which is expected to be operational by 2028.
It promises to integrate a wide range of computing densities and “energy-efficient architecture” to address the challenges posed by traditional data centres, which place high demand on local electricity grids.
Oxagon will lease the land to DataVolt for the development of the facility and provide infrastructure support to the data centre operator.
Neom said the ambition is for the facility to be powered entirely by renewable energy, as well as employing advanced cooling technologies.
Its location on the Red Sea coast means that it will also have access to sub-sea cables providing fibre connectivity.
Rajit Nanda, CEO of DataVolt, said, “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 data centres. This project marks a significant milestone in advancing the Kingdom’s leadership as a digital powerhouse in the region.”
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