NEOM, DataVolt to launch $5B AI factory in Oxagon

NEOM and DataVolt, a Saudi-based international developer, investor and operator of data centers, signed a partnership agreement to design an AI factory that will operate as an integrated data center, with a total capacity of up to 1.5 gigawatt.

The development will take a phased approach, with phase one – funded by an initial investment of $5 billion – expected to be operational by 2028, NEOM said in a statement.

Aligning with Oxagon’s ambition, the 1.5-gigawatt factory will integrate a wide range of computing densities and energy-efficient architectures to address the global challenges posed by traditional data centers.

As part of the agreement, Oxagon will lease DataVolt the land for the development of the facility and provide the sustainable data center operator with infrastructure support.