Saudi Arabia is making a significant move in the artificial intelligence sector with a $5 billion investment in an AI data center, set to be established within the futuristic city of NEOM. The agreement, signed between DataVolt and NEOM, aims to create a fully sustainable AI data center with a massive 1.5-gigawatt capacity, as reported by the Saudi Press Agency (SPA).
The project will be located in Oxagon, an industrial hub within NEOM that is being designed to become the world’s largest floating industrial complex. This AI data center will serve as a critical component in Saudi Arabia’s push to become a global leader in AI and digital infrastructure, further aligning with the nation’s Vision 2030 strategy to reduce dependency on oil and drive technological innovation.
NEOM, a flagship initiative unveiled by Crown Prince Mohammed bin Salman, is an ambitious urban project that includes The Line, a 170-kilometer-long mirrored city stretching across the desert from the Gulf of Aqaba. Initially projected to house over one million residents by 2030 and nine million by 2045, developers have since adjusted expectations, with Bloomberg reporting that the population target for 2030 has been revised to 300,000.
Saudi Arabia has been accelerating its investment in next-generation technologies, recognizing AI as a key driver of economic transformation. The AI data center at Oxagon is expected to provide cutting-edge computational power and storage solutions for AI-driven applications across industries, including smart cities, automation, and digital governance.
Beyond AI, NEOM’s development has been progressing steadily. In late October 2024, Saudi Arabia opened Sindalah, a luxury resort on the Red Sea, marking NEOM’s first operational project. The broader Vision 2030 initiative continues to shape the kingdom’s technological and economic future, reinforcing its ambition to lead in AI and emerging technologies.
As the AI race intensifies globally, this $5 billion investment places Saudi Arabia in a strong position to attract major tech companies and AI research initiatives. The Oxagon AI data center is set to play a vital role in advancing sustainable AI infrastructure, contributing to the kingdom’s long-term digital transformation goals.
