Saudi Arabia’s NEOM has partnered with DataVolt to develop a 1.5-gigawatt (GW) net-zero artificial intelligence project in its Oxagon industrial zone, marking a major step in the kingdom’s AI ambitions. According to the Saudi Press Agency, the initiative aims to position NEOM as a global technology hub, leveraging sustainable energy to power advanced AI infrastructure.

According to the Saudi Press Agency, the integrated data center will receive $5 billion in investment during its first phase, with operations expected to begin in 2028. This initiative aligns with Saudi Arabia’s broader push to establish itself as a global AI hub, positioning NEOM as a key player in the regional race alongside the UAE and Qatar. With demand for generative AI surging, the project aims to provide the massive computing power required to drive innovation in artificial intelligence.

Last year, Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), emphasized the kingdom’s potential as a global hub for AI development, particularly outside the United States, pointing to its abundant energy resources and strong financial capabilities. Additionally, a plan for a $40 billion fund focused on AI development, in collaboration with international partners, was reported to be in the works, further underscoring Saudi Arabia’s ambition to lead the AI space.

NEOM, set to span an area nearly the size of Belgium and house 9 million people, is a central part of Saudi Arabia’s Vision 2030 economic diversification strategy to reduce reliance on oil revenue. NEOM’s Oxagon will be an industrial city fully powered by renewable energy.

However, sources told Reuters in November that the kingdom has revised some of its ambitious plans, focusing on completing projects essential for hosting global sporting events over the next decade. Rising costs have impacted project timelines.