On the Red Sea Coast, Saudi Arabia’s AI Ambition Takes Shape Through Data Centers Built for Tomorrow’s Digital Economy

Along Saudi Arabia’s Red Sea coast, the landscape is changing in ways that are not always visible from a distance. Beyond the roads, industrial structures and expanding developments of NEOM, another layer of infrastructure is beginning to take shape—one measured not in buildings alone, but in computing capacity. At Oxagon, Humain and DataVolt have announced plans to develop 100 megawatts of an artificial intelligence-ready data center, placing digital infrastructure at the center of a rapidly developing industrial environment.

The project represents the first 100 MW portion of a planned 360 MW first phase for DataVolt’s AI data center campus at Oxagon. Construction is already underway, according to the companies, with the initial capacity expected to become available in 2028. The larger vision extends beyond that first phase, forming part of a planned 1.5 gigawatt AI campus in the area.

For Humain, the project adds another physical layer to its ambition in artificial intelligence. The Saudi company, backed by the Public Investment Fund, is focused on developing full-stack AI capabilities, while DataVolt specializes in digital infrastructure. Their partnership therefore brings together two sides of the same emerging ecosystem: the systems that require enormous computing resources and the facilities built to provide them.

Data centers have become increasingly important as artificial intelligence systems grow more demanding. Training and operating advanced models requires large clusters of high-performance computing equipment, together with reliable electricity, cooling systems and high-speed connectivity. In that sense, a data center is less like a conventional office building and more like an industrial engine, quietly consuming and processing vast quantities of information.

Oxagon provides a particular setting for that development. Located within NEOM on the Red Sea coast, the industrial city is being positioned as a base for advanced manufacturing and technology-oriented industries. The new AI facility is intended to use renewable energy sources, advanced cooling technologies and high-performance computing clusters, according to the companies involved.

The location also reflects the importance of connectivity. The project is expected to benefit from subsea cable infrastructure and low-latency computing connections, allowing data to move efficiently between facilities and users. As artificial intelligence becomes increasingly integrated into cloud services, enterprise software and digital platforms, proximity to dependable connectivity can be nearly as important as the physical computing equipment itself.

The financial value of the specific 100 MW development was not disclosed in the announcement, and the companies did not provide a detailed timeline for the remaining 260 MW of the first phase. That leaves the project’s full scale to emerge gradually as construction progresses. For now, the 100 MW commitment provides the clearest measure of the immediate development underway.

The announcement also arrives as Saudi Arabia continues expanding its digital infrastructure around artificial intelligence. Recent agreements involving Humain and other technology companies have broadened the country's efforts across computing, software and AI services. The data center at Oxagon adds another piece to that wider architecture, giving future AI workloads a physical home within the kingdom.

By 2028, if the initial schedule remains on course, the first 100 MW of capacity could stand as part of a much larger technology landscape along the Red Sea. For now, construction equipment and industrial planning may tell only a small part of the story. Beneath those visible structures lies the quieter expansion of servers, networks, energy systems and computing power that increasingly defines the infrastructure of the digital economy.

AI Image Disclaimer This article uses AI-generated illustrations created for visual representation. The images are illustrative and are not photographs of the actual project or location.