NEOM, DataVolt Partner For Net-Zero AI Campus In Oxagon

Saudi Arabia's NEOM, an ambitious megaproject in development, has now signed another groundbreaking contract with a sustainable data center developer, DataVolt, based in Riyadh, to develop a net-zero AI factory campus in NEOM's Oxagon region. The $5 billion first-phase effort plans to redefine operations of data centers via energy-efficient designs and renewable energy solutions, ultimately setting the standard worldwide for sustainable AI-driven facilities. The first phase is expected to become operational by 2028.

This development comes at a time when the rapid growth of AI is expected to have a huge impact on global carbon emissions. The International Energy Agency (IEA) estimates that the power requirements of AI-enabled data centers will double by 2026 and will continue to grow in the following years, while these growths are an immediate challenge for global decarbonization efforts. Tech titans such as Microsoft, Google, and Amazon have already identified the increased energy consumption of AI-driven data centers as a hindrance to achieving their sustainability targets.

NEOM and DataVolt's agreement directly confronts these issues by planning a facility designed around net-zero operations. DataVolt will lease land in Oxagon, a futuristic industrial city located along NEOM's Red Sea coast, while Oxagon will provide key infrastructure support for the ramping up of the development. The site shall be powered fully by renewable energy and shall utilize advanced cooling technologies to limit its impact on the environment.

"This agreement with NEOM and Oxagon underscores our unwavering commitment to help support the Kingdom's vision of becoming a digital and AI hub in the region," said Rajit Nanda, CEO of DataVolt. "The Kingdom, with its strategic location and abundant green energy resources, stands to gain from DataVolt's mission in providing state-of-the-art sustainable data centers."

The location at Oxagon on the Red Sea is further sustained as a unique advantage for the project. It gives easy access to sub-sea cables providing fiber connectivity and cost-competitive renewable energy and green hydrogen resources. These considerations make Oxagon an ideal location to set up a large-scale green AI factory, NEOM says.

"The agreement with DataVolt highlights the potential impact of the sustainable infrastructure Oxagon offers its tenants and sets the foundations for the first green-AI workload to come on-stream in KSA along with the computing power for regional and global impact," states Oxagon CEO Vishal Wanchoo.

The partnership between NEOM and DataVolt is expected to play a key role in developing Saudi Arabia's AI and digital prowess under Saudi Arabia's Vision 2030 initiative, which seeks to help diversify the economy and establish Saudi Arabia as the leading region for technology and sustainability. It complements the broader goal of positioning the Kingdom as a technological and innovation hub, while also making a statement on environmental stewardship.

The net-zero AI campus sets a daring precedent to tackle the environmental challenges inflicted by the burgeoning demand for data processing and storage. By utilizing cutting-edge technology and the abundant renewable energy resources of the area, the facility is expected to set a global benchmark for sustainable AI infrastructure.

This partnership becomes even more critical as the global AI marketplace continues to expand at an unusual pace, demanding ever more sustainable solutions. The collaboration between NEOM and DataVolt represents concrete proof of a proactive effort towards technological advancement versus environmental responsibility. In a climate change context, initiatives like the net-zero AI campus in Oxagon portray a sustainable future where innovation meets environmental consciousness.

The project greatly complements Saudi Vision 2030 while also imparting leading principles toward which other territories and industries alike might become inspired. Sustainability and the latest technologies are the right way joined in partnership to combat, on a truly global scale, the environmental impact imposed by digital transformation and the growth of AI.