Neom planned artificial intelligence data centre campus at Oxagon is expected to begin construction within the next few months, according to DataVolt, the developer leading the project. The announcement marks an important stage for one of Saudi Arabia most closely watched giga projects as the focus increasingly shifts toward building practical digital infrastructure, including ports, logistics facilities, and large scale data centres. Speaking to AGBI, DataVolt Chief Executive Rajit Nanda said the first phase of the development has reached its final preparation stage, with discussions continuing with multiple prospective customers before construction begins. He added that the company expects to break ground within the next two to three months as it moves forward with the planned artificial intelligence facilities.
Neom and DataVolt signed an agreement in February 2025 to develop a 1.5 gigawatt artificial intelligence data centre campus at Oxagon, the industrial and port hub located on the Red Sea. The project forms part of Saudi Arabia broader efforts to expand artificial intelligence infrastructure and strengthen its position as a regional technology hub. Although DataVolt has not disclosed the capacity of the first phase, the identities of potential customers, or the value of contracts currently under discussion, previous company statements indicate that the initial phase will be funded through a five billion dollar investment and is expected to become operational by 2028. Nanda also said the company anticipates securing non recourse project financing for all of its facilities under construction in Saudi Arabia, including the Neom project, within the next six months. Under the agreement, Oxagon will lease land for the development while also providing supporting infrastructure needed for the project.
The Oxagon facility has been designed as an artificial intelligence factory, a large scale data centre campus built specifically to support artificial intelligence workloads that require significant computing power, advanced cooling systems, and high speed connectivity. Neom has stated that the campus will operate entirely on renewable energy and is intended to achieve net zero operations. The project reflects the increasing importance of data centres in supporting artificial intelligence applications, which require substantial processing capacity and storage while consuming large amounts of electricity. According to the International Energy Agency, data centres accounted for approximately 1.5 percent of global electricity consumption in 2024, with demand expected to more than double by 2030 as artificial intelligence adoption continues to increase. Nanda previously explained that DataVolt strategy focuses on locating computing infrastructure close to energy resources because energy availability is a key factor in supporting artificial intelligence computing. He also noted that Saudi Arabia offers advantages including competitively priced green energy, extensive land availability, and government support, which he believes position the country as a competitive location for global artificial intelligence infrastructure.
DataVolt is a wholly owned subsidiary of Vision Invest, a Saudi company focused on investments in power, water, and cooling infrastructure, and is chaired by former ACWA Power Chief Executive Paddy Padmanathan. The latest timeline provides renewed momentum for the Neom project following reports of delays, rising development costs, and increased emphasis on commercially and strategically important initiatives. Some of Neom flagship developments, including The Line and Sindalah, have attracted significant public attention, while Saudi Arabia also postponed the 2029 Asian Winter Games planned for Trojena because the site would not be completed on schedule. Addressing public perception, Nanda said there has been considerable negative coverage surrounding Neom that he believes is not justified. He added that DataVolt has intentionally remained focused on project execution and expects greater recognition of its progress once construction begins and investment grade customers are formally announced.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
