Saudi Arabia is making a significant investment of $5 billion to develop a net-zero AI data center campus at Neom, a futuristic city located at the northern edge of the Red Sea. This initiative is part of Saudi Arabia’s Vision 2030 plan, which aims to diversify the Kingdom’s economy and reduce its dependency on fossil fuel revenues.

Neom previously announced its first data center project named ZeroPoint DC in 2022. The new facility will be situated within Oxagon, Neom’s industrial zone, which is designed to leverage cost-competitive renewable energy sources, including green hydrogen, and benefit from subsea fiber connectivity.

Vishal Wanchoo, CEO of Oxagon, highlighted that the initiative places Saudi Arabia at the forefront of the global energy transition, emphasizing the establishment of a renewable energy industrial ecosystem to power businesses with sustainable energy and technological solutions.

Inside the Oxagon Net-Zero AI Data Center

The AI data center at Oxagon is tailored to manage AI workloads by incorporating various computing densities and energy-efficient architectures. It is projected to have a target capacity of 1.5 gigawatts, with all the power derived from renewable energy sources, thus aiming for net-zero carbon emissions.

The project is set to unfold in phases, with the initial $5 billion investment focused on constructing the core infrastructure to support AI and high-performance computing operations, anticipated to be completed by 2028.

The Trend Towards Net-Zero Data Centers

The growth in demand for data centers, particularly driven by AI, is leading to a stronger emphasis on net-zero operations. The shift towards a net-zero approach seeks to mitigate energy impacts, although several challenges persist. Numerous data center operators have committed to net-zero emissions goals, motivated by regulatory requirements and global decarbonization objectives.

Rithika Thomas, a senior analyst at ABI Research, explained that data center operators are employing various strategies to align with regulatory pressures and enhance sustainability, including advanced cooling techniques, responsible computing, and circular IT practices, while also exploring alternative energy sources.

Defining Net-Zero Beyond Energy Consumption

Achieving net-zero involves more than just utilizing renewable energy. Experts stress the importance of considering geographical factors in data center design. Dave Williams from PAE Engineers noted that local annual weather data is crucial for making informed infrastructure decisions that enhance energy efficiency and reduce costs.

Sean Farney of JLL outlined approaches to sustainability, categorizing them into evolutionary methods (improving existing processes) and revolutionary advancements (adopting new energy sources). He stressed that optimizing current operations could significantly aid in reaching net-zero goals.

Abdullah Choudhry, chief impact officer at Arbor, emphasized that building a net-zero data center presents significant challenges due to the complexity of managing operational and embodied emissions. With data centers consuming about 1-2% of the global electricity supply, addressing the full lifecycle of data center sustainability—including material selection, design for upgrades, and recycling—is vital for achieving genuine net-zero status.

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