AI is changing logistics. It drives routing, forecasting, and automation workflows that depend on large, always-on compute. But compute needs energy, and energy is the bottleneck many operators now face. DataVolt’s CEO Rajit Nanda has framed the issue directly, saying the company was created by infrastructure leaders who see energy as the real bottleneck in the digital age, aiming to “bring power to the data, not the other way round.” That thinking is now shaping a major project in Saudi Arabia’s NEOM, where compute scale and sustainability are being planned together.
The planned AI facility in Oxagon is positioned as a net-zero AI factory campus designed and developed under an agreement between NEOM and Riyadh-based DataVolt. Public reporting states the first phase outlines a USD $5 billion investment to build a 1.5 GW net-zero AI data center, expected to be operational by 2028. The plan includes integrating a wide range of computing densities and energy-efficient architectures, which matters for logistics use cases that can mix latency-sensitive tasks with heavier model training and inference. The intent is also to use advanced cooling technologies to improve energy efficiency, since modern high-density deployments demand resilient thermal design.
Why Oxagon’s Location Matters for AI-Driven Supply Chains
Oxagon’s geography and infrastructure are part of the proposition. NEOM has described Oxagon as being on the Red Sea coast with access to sub-sea cables that provide fibre connectivity. It has also pointed to cost-competitive renewable energy and green hydrogen as additional advantages, alongside what it calls a rapidly expanding industrial ecosystem. For AI logistics, that combination supports two needs at once: connectivity for data movement and workloads, and a power strategy that can keep growth aligned with sustainability goals. Oxagon CEO Vishal Wanchoo has said the agreement sets foundations for the first green AI workload to come on-stream in Saudi Arabia, with computing power intended for regional and global impact.
The broader industry context helps explain why this approach is emerging now. The International Energy Agency (IEA) has predicted that AI-driven data center power usage could double by 2026, increasing scrutiny on energy supply and emissions. DataVolt’s approach in Oxagon is explicitly framed around net-zero operations powered entirely by renewable energy, while using advanced cooling to enhance energy efficiency. This is also consistent with DataVolt’s “AI-first” design view, which emphasizes rethinking everything from cooling architecture to campus layouts to support massive GPU clusters, accelerated computing, and long-term scalability.
Zooming out, DataVolt is a young operator with a fast build-out ambition. The company was established in 2023 and builds and operates data centres across the Middle East and Central Asia. It has five office locations worldwide and around 175 staff members, with multiple projects under development across Saudi Arabia and Uzbekistan. One tracking source lists DataVolt with 2 tracked facilities totaling 1.5 GW of selected tracked capacity, with 0% currently operational and both sites in the pipeline. For logistics leaders evaluating where AI compute may sit in the future, the DataVolt Oxagon AI data center plan is a concrete example of how compute density, renewable power, and net-zero design are being packaged as one infrastructure story.
What is planned for DataVolt’s AI facility in NEOM’s Oxagon?
How will the Oxagon AI campus address energy and emissions?
Why is Oxagon positioned as a fit for high-connectivity AI workloads?
What does the IEA say about AI-driven data center power demand?
How large is DataVolt today as an operator and developer?
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