Saudi Arabia’s Neom, the megacity being developed on the Red Sea coast, secured a $5 billion investment from a local firm to establish an AI data center.
The deal with Saudi-based DataVolt will see the company inject that money into the first phase of the project, expected to be operational by 2028, according to statements from Neom and the Saudi Press Agency. The 1.5-gigawatt site will be housed in Oxagon, an industrial hub within Neom.
Neom is a cornerstone project of Crown Prince Mohammed bin Salman’s multi-trillion dollar agenda to diversify the Saudi economy from oil. It’s envisaged to eventually comprise about a dozen different regions including a floating port and luxury tourist destinations.
The investment from DataVolt will bolster Saudi Arabia’s ambitions to create a global logistics hub at Neom and become a center for artificial intelligence.
Saudi Arabia has launched research centers and ministries devoted to AI and produced large-language models similar to OpenAI’s ChatGPT. It’s also planning a new artificial intelligence project with backing of as much $100 billion
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