DataVolt, a Saudi developer, investor, and operator of data centers, has partnered with NEOM, the sustainable region to develop the first net-zero AI data center in Oxagon, northwest Saudi Arabia. The deal is a significant milestone in the region’s transformation into a data-driven, sustainable economy. The collaboration will build energy-efficient data centers that address global environmental issues in line with Saudi Arabia’s vision.

Phased Development and Massive Investment

The project will roll out in phases, starting with the first phase, which will receive a $5 billion investment. The initial phase, which consists of a cutting-edge 1.5-gigawatt unit, will be operational by 2028. To service the demand for data processing while minimizing its contribution to the environment, the factory will utilize energy-saving equipment and advanced computing.

A Growing Need for Sustainable Solutions

The IEA notes that data centers consume 1 to 1.3 percent of global electricity, with power demand rising due to AI growth. The rising energy consumption and carbon emissions highlight the urgent need for clean, sustainable solutions for the industry’s future.

Vishal Wanchoo, CEO of Oxagon said, “The Kingdom is at the forefront of the global energy transition. At Oxagon, we are accelerating a renewable energy industrial ecosystem that is set to power businesses with green energy and technology solutions.

He added, “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.”

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As part of the agreement, Oxagon will provide the land and infrastructure support for the development of the facility. The data center also aims to run entirely on renewable energy, using advanced cooling technologies to achieve net zero emissions. This will help tackle the global challenges of power availability and the carbon footprint of traditional data centers.

Oxagon’s Red Sea location offers excellent access to subsea cables and fiber connectivity, ideal for DataVolt’s green AI factory. The region’s renewable energy, green hydrogen resources, and growing industrial ecosystem create the perfect environment for this sustainable data center.

The International Finance Corporation (IFC) has deepened its collaboration with Ghana’s LMI Holdings, a top conglomerate, to propel clean energy production in the nation. The partnership will see the development of the largest private-sector-driven, utility-scale solar plant in West Africa, targeting improved energy access for companies in two of Ghana’s Special Industrial Zones.

Significant Investment in Clean Energy Development

IFC is investing $21 million as part of a $100 million loan for the development of a 150 MW solar power plant. This project will cater to businesses in LMI Holdings’ Tema and Dawa industrial zones. The first 100 MW phase finishes by October 2026, followed by a second phase adding 50 MW by June 2027.

The Solar For Industries program, once operational, will power 100+ food processing, cement, steel, textile, and light manufacturing enterprises. The solar power plant will avoid 120,000 metric tons of carbon emissions every year while providing stable, low-cost, and clean energy to all. The program will not only increase energy reliability but also save businesses money, promoting increased industrial development.

Kojo Botsio Aduhene, CEO of LMI Holdings, said, “A thousand-mile journey starts with a step. This is the start of our planned 1000MW solar farm – a feat we intend to achieve by 2032.”

Boosting Industrial Growth in Ghana

Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa, highlighted the importance of reliable, affordable clean energy in supporting industrial growth and economic development in Ghana. She emphasized the partnership as a sign of IFC’s commitment to private sector-led renewable energy, boosting investment, competitiveness, and jobs.

Also read: IFC Invests $53 Million to Boost Green Building Certification and Decarbonization in Indonesia

Supporting Ghana’s Renewable Energy Targets

The investment helps support Ghana’s 2030 Renewable Energy Master Plan ambition of 10% renewable energy contribution. The development of the IFC Ghana Solar Power Plant is a significant step in reaching these sustainability and energy goals.

Additionally, this project comes after a long-term history of cooperation between IFC and LMI Holdings. Along with the IFC Ghana Solar Power Plant, the IFC backed Africa’s largest rooftop solar project (16.82 MW) in Tema Free Zone and funded a water treatment plant in Dawa.