Saudi Arabia’s Neom, a Red Sea urban and industrial development, has partnered with AI infrastructure firm DataVolt to develop a net zero AI project in its Oxagon industrial hub.

The 1.5-gigawatt facility is set to launch by 2028, with the first phase will require a US$5 billion investment.

This positions Saudi Arabia as a key AI hub amid growing competition from the United Arab Emirates and Qatar.

Neom, a key part of Saudi’s Vision 2030, aims to host 9 million residents and reduce the country’s reliance on oil.

Despite its ambitions, Saudi Arabia has scaled back some large projects to prioritize infrastructure for international events due to financial constraints.