DataVolt, a major player in the digital infrastructure market in the Middle East, has signed an agreement with the Saudi Authority for Industrial Cities and Technology Zones (MODON), to invest US$ 660 million into developing a data center in Riyadh’s Tech City.
Magide Sebtioui, Vice President, Global Sales & Marketing, DataVolt, took to LinkedIn and shared, “I am thrilled to announce that we have signed a strategic investment agreement with MODON to develop a state-of-the-art data center in Riyadh’s Tech Zone.” He further said, “This transformative project, with a total investment exceeding 2.5 billion SAR ($660+ million USD), will span 55,000 square meters, strengthening our commitment to advancing Saudi Arabia’s digital infrastructure.”
The announcement was made on the sidelines of the ongoing LEAP technology conference. Established in 2002, MODON today oversees the development of three dozen industrial cities across Saudi Arabia.
At the same conference, DataVolt also announced that it was going to develop a 1.5 GW net zero AI factory campus in Oxagon, which is an under-development industrial zone that is part of the wider futuristic NEOM project. The project would see investment worth US$ 5 billion.
Taking to LinkedIn, the Saudi Ministry of Communications posted, “To enhance the Kingdom’s AI capabilities, DataVolt announced at LEAP2025 an investment in NEOM Oxagon to develop a large-scale, innovative AI data center campus in NEOM, making it a global destination for advanced computing and innovation.” The project will build Saudi Arabia’s first fully sustainable AI data center with an initial capacity of 300 MW, with the ultimate goal of reaching 1.5 GW.
The project is in line with DataVolt’s vision of building sustainable digital infrastructure powered by renewable energy. It is also in line with the wider green agenda of the NEOM project that has already commissioned investments in solar and wind energy.
*UPDATE: In a press release, DataVolt revealed, “The development will take a phased approach, with phase one funded by an initial investment of USD 5 billion expected to be operational by 2028. 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.” It further explained the rationale behind the project saying, “Oxagon’s strategic location on the Red Sea coast, combined with access to sub-sea cables providing fiber connectivity, alongside cost-competitive renewable energy, green hydrogen, and a rapidly expanding industrial ecosystem, makes it the ideal location for DataVolt to develop a large-scale green AI factory.”
Commenting on the landmark announcement, Vishal Wanchoo, CEO of Oxagon, said, “The agreement with DataVolt highlights the potential impact of the sustainable infrastructure Oxagon offers its tenants and sets the foundations for the first green-AI workload to come on-stream in KSA along with the necessary computing power for regional and global impact.”
Rajit Nanda, CEO of DataVolt, added, “The Kingdom’s strategic location, coupled with its abundant green energy resources, aligns perfectly with DataVolt’s mission in providing state-of-the-art sustainable data centers. This project marks a significant milestone in advancing the Kingdom’s leadership as a digital powerhouse in the region.”
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. The ambition is for the facility to be entirely powered by renewable energy, providing a fully integrated, end-to-end data center solution. The project will utilize advanced cooling technologies and is designed to operate at net zero, addressing the global challenges of power availability and the carbon footprint posed by data centers.
LEAP 2025 is organized by the Ministry of Communications and Information Technology, the Saudi Federation for Cybersecurity, Programming, and Drones (SAFCSP), and Tahaluf Company, supported by the Events Investment Fund. AI investments to the tune of over US$ 14 billon have been announced at LEAP 2025 so far.