Saudi Arabia’s $12.8 billion data center at Oxagon, NEOM to boost regional data infrastructure

Saudi Arabia is investing an estimated $12.8 billion in a new 1GW data center at Oxagon, NEOM, aiming to significantly boost the kingdom’s data storage and processing capabilities. This great project is part of a broader initiative to meet the growing demand for digital infrastructure in the region.

Several other key projects are also underway in Saudi Arabia, including Pure Data Centres Group and Dune Vaults JV targeting 1GW of capacity with an $11 billion investment. DataVolt, in collaboration with center3, is investing $5 billion in data centers, while Zoho Corp is contributing $133 million to establish centers in Riyadh and Jeddah. ServiceNow is committing $500 million for a regional headquarters and two data centers, and AWS is investing $5.3 billion in expanding its regional infrastructure. Additionally, Oracle is growing its cloud presence with a $1.5 billion expansion in Riyadh.

As per report, current data center capacity in Saudi Arabia is around 250MW, demand is expected to soar. The kingdom’s rapid adoption of 5G, along with projected increases in smartphone data traffic, gaming, esports, and IoT/Edge technologies, all signal a need for expanded capacity.

These significant investments position Saudi Arabia as a key player in the regional data economy, with Oxagon, NEOM set to play a pivotal role in shaping the future of data infrastructure in the Kingdom and beyond.