OXAGON: Pioneering Sustainable Industry in Saudi Arabia
A Vision for Economic Growth
Saudi Arabia’s OXAGON, an ambitious industrial city forming part of the NEOM project, is set to begin construction on extensive solar and wind manufacturing facilities in 2026. This initiative, spearheaded by CEO Vishal Wanchoo, aims to create thousands of jobs, representing the first major wave of industrial employment for NEOM.
In an interview with Arabian Business during the Future Investment Initiative (FII) in Riyadh, Wanchoo emphasized the purpose behind OXAGON’s establishment: fostering economic growth. He stated, “All the companies that we’re bringing in are job creators. This is really the first kind of, I would say, at-scale job creation in NEOM with what these companies bring.”
Expanding the Industrial Agenda
The push for manufacturing at OXAGON broadens NEOM’s industrial vision beyond its landmark green hydrogen project. Wanchoo explained that the focus will now include substantial production capabilities in solar and wind energy. These initiatives aim to generate multiple gigawatts of capacity annually.
Highlighting the timeline, Wanchoo noted that construction is anticipated to commence in 2026, with production expected to follow by 2027 or 2028, depending on the technology being implemented. This provides a promising outlook for the region’s clean energy sector.
Innovations in Energy Storage
In addition to renewable energy production, OXAGON’s plans include integrating grid-scale battery storage facilities. These will help stabilize the output from renewable sources, ensuring the region can meet its broader energy demands effectively.
Wanchoo stressed that OXAGON’s commitment to sustainability will heavily influence how these manufacturing sectors are powered. The initiative aims to eliminate all carbon-producing assets, with a plan to utilize green hydrogen as a backup power source, moving away from traditional diesel.
A Floating Industrial Complex
Strategically located along the Red Sea coast, OXAGON is being developed as one of the world’s largest floating industrial complexes, serving as the manufacturing and logistics hub for NEOM. The site is already home to the Port of NEOM, which facilitated approximately 1,000 vessel calls last year, showcasing its operational scale.
Plans for a second terminal are currently underway, with expectations for completion by 2027. Wanchoo indicated that this expansion, coupled with an automated logistics program, will support the new manufacturing facilities while also harmonizing with ongoing green hydrogen projects and advancements in digital infrastructure.
Collaborations for a Sustainable Future
OXAGON has also forged a partnership with Saudi data center developer DataVolt to establish a 1.5-gigawatt artificial intelligence and data infrastructure campus that will be entirely powered by renewable resources. This campus will utilize seawater cooling sourced from the Red Sea and incorporate hydrogen-based backup systems to eliminate reliance on diesel fuel.
As the momentum builds across OXAGON’s various projects, Wanchoo expressed optimism. “I think you’ll start to see this become much more common, and a lot more people get to know it,” he stated, emphasizing the commitment to engaging local communities and showcasing the developments as quickly as possible.
A Future of Opportunities
As OXAGON progresses, it not only aims to redefine sustainable industrial practices but also seeks to create a wealth of employment opportunities. This holistic approach towards clean energy manufacturing, infrastructure development, and innovative technology places OXAGON at the forefront of transforming the region’s economic landscape, reinforcing Saudi Arabia’s commitment to a sustainable future.
