August 31, 2026, (Inside AI) — Saudi Arabia-backed AI firm Humain and digital infrastructure specialist DataVolt will build the first phase of a data center at Oxagon, the industrial hub within the NEOM megaproject on the Red Sea coast.
The initial phase targets around 100 megawatts of capacity, according to a NEOM statement released Monday. The partnership marks a concrete step in the kingdom’s push to become a regional AI and cloud computing hub.
The announcement answers the core questions: who, Humain and DataVolt; what, a 100 MW data center; where, Oxagon in NEOM; when, announced August 31, 2026; why, to support AI and digital infrastructure growth. How the project will be financed or powered remains unclear.
Oxagon is designed as a floating industrial complex and advanced manufacturing center. It sits on the Red Sea, offering access to global shipping lanes and potential for subsea cable landings. Data centers there could serve both domestic and international customers.
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The project aligns with Saudi Vision 2030, the kingdom’s economic diversification plan. AI and cloud services are central to that strategy, with the government investing heavily in digital infrastructure.
Humain is a relatively new player in the Saudi AI landscape. The company has positioned itself around sovereign AI capabilities, focusing on models and applications tailored to Arabic language and regional needs. DataVolt brings expertise in building and operating large-scale digital infrastructure.
The partnership does not disclose financial terms or a construction timeline. Industry observers note that power availability and cooling efficiency are critical for Red Sea data centers, where ambient temperatures can be extreme.
NEOM has faced scrutiny over costs and timelines for some of its flagship projects. However, data center development is often seen as a lower-risk bet compared to futuristic residential concepts, given the region’s growing demand for cloud capacity.
Competing projects are also emerging across the Gulf. The United Arab Emirates and Qatar have announced their own AI data center initiatives, creating a regional race for digital infrastructure dominance.
Regional Data Center Race Intensifies
Gulf states are pouring billions into AI-ready infrastructure. Saudi Arabia’s push at Oxagon mirrors efforts in neighboring countries to attract hyperscalers and AI startups.
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The Red Sea location offers strategic advantages for connectivity to Europe, Africa, and Asia. Subsea cable systems often land near such industrial zones, reducing latency for international data traffic.
Yet challenges remain. Water scarcity limits traditional evaporative cooling methods. Developers are exploring liquid cooling and renewable energy sources, including solar and green hydrogen, to meet sustainability goals.
NEOM has touted itself as a testbed for clean energy technologies. A data center powered by renewable sources could serve as a showcase for sustainable AI infrastructure in arid climates.
Powering AI Ambitions With Concrete Capacity
The 100 MW first phase is substantial but modest compared to global hyperscale campuses that can exceed 1 gigawatt. Still, it represents a meaningful commitment in a region where reliable power and land are premium resources.
Humain’s role likely extends beyond real estate. The company may deploy AI training and inference workloads at the site, potentially offering sovereign cloud services to government and enterprise clients.
DataVolt’s operational experience will be critical for uptime and efficiency. The firm has not publicly detailed its cooling or power architecture for the Oxagon facility.
No named executives were quoted in the NEOM statement. The announcement was attributed to NEOM as an entity, leaving questions about project leadership unanswered.
The data center could anchor a broader digital ecosystem at Oxagon, attracting hardware suppliers, software developers, and AI research teams. Such clustering effects have driven growth in established tech hubs globally.
For Saudi Arabia, the project is another signal that it intends to compete not just on oil exports but on compute capacity. AI infrastructure is increasingly viewed as strategic national assets.
The next milestones will be construction permits, power purchase agreements, and anchor tenant announcements. Those details will determine whether the 100 MW target is met on schedule.
