The Zamzam camp was stormed last week by the paramilitary group Rapid Support Forces (RSF), which according to witnesses led to clashes with the Sudanese army. According to IOM's estimates, 10,000 families have been forced to flee.
The camp, which was affected by famine, was home to at least half a million people.
The African Union (AU) describes in a statement its "deep concern over the continued escalation of the conflict between the two warring parties, particularly the repeated war crimes and human rights violations".
The statement also urges the warring parties, RSF and the Sudanese army, to observe a humanitarian ceasefire during the Ramadan holiday, which begins in March.
Tens of thousands of people have been killed in the war and over twelve million people have been forced to flee in what the UN describes as the world's largest refugee crisis.
