Oxagon is NEOM's industrial city component, designed from the ground up as a clean manufacturing ecosystem. Unlike traditional industrial zones that retrofit automation onto existing facilities, Oxagon integrates robotics, IoT, AI, nanotechnology, and circular economy principles into the urban fabric itself. In February 2025, DataVolt and NEOM signed an agreement to develop the region's first net-zero AI factory campus within Oxagon. Topian opened Oxagon's first climate-resilient greenhouse in December 2024. The Oxagon x McLaren Accelerator brings startups into the ecosystem for at-scale pilot opportunities.
Oxagon's strategic position on the Red Sea — through which approximately 13% of global trade passes — is deliberate. It connects clean manufacturing with global shipping routes, enabling export-oriented production powered entirely by renewable energy. Phase 2 construction began in 2025, with the port and industrial zones being prioritized over The Line's residential ambitions. This pragmatic reprioritization toward revenue-generating industrial capacity suggests NEOM's most commercially viable output may come from Oxagon rather than The Line.
The concept of a greenfield Industry 4.0 city is genuinely novel — most smart manufacturing initiatives are constrained by legacy infrastructure. Oxagon's blank-slate approach allows for optimization of energy flows, material logistics, and digital infrastructure in ways impossible in existing industrial zones. If successfully executed, it provides a replicable template for clean industrial development in emerging economies seeking to industrialize without the carbon legacy of 20th-century manufacturing.