Iran Strikes Data Centres, Threatening Big Tech and AI Ambitions in the Gulf
An Amazon data centre located on the outskirts of Abu Dhabi, near the Iranian coast, has recently come under attack. This facility, part of a network of six data centres operated by Amazon across Bahrain and the United Arab Emirates (UAE), was “directly struck” by Iranian drones last week, as reported by Amazon. Additionally, a drone strike occurred near another Amazon facility in Bahrain.
The data centre, equipped with high-powered computers, serves as a physical embodiment of cloud computing. The recent strikes are part of a broader strategy by Iran, which has targeted various civilian infrastructures in the Gulf region, including hotels and oil refineries, to impose costs on its adversaries.
Gulf States Under Fire
The UAE, known for its political stability and access to affordable energy, was anticipated to be at the forefront of AI development. In May 2025, US President Donald Trump announced over $2.8 trillion in investment pledges during a tour of Saudi Arabia, Qatar, and the UAE. A centerpiece of this investment was a $700 billion AI data centre in Abu Dhabi, developed in partnership with OpenAI, NVIDIA, Oracle, and Cisco, which was touted to potentially serve half the world’s population.
However, the future of AI in the Gulf is now uncertain following the drone strikes. Jessie Moritz, a senior lecturer in political economy at the Australian National University, stated that the region is no longer a secure environment for such infrastructure. The strikes represent a shift in Iran’s approach to warfare, which has increasingly targeted technology assets that it claims support US military efforts.
Big Tech Added to Iran’s List of Targets
The recent attacks have raised concerns about the safety of data centres, which are now considered strategic targets. The US Secretary of War, Pete Hegseth, has indicated that the military will adopt an “AI-first” approach, aiming to streamline operations and eliminate bureaucratic barriers. This military focus on AI has made tech companies, including Amazon, vulnerable in the ongoing conflict.
Iran’s Revolutionary Guard has publicly justified the strikes on Amazon data centres by linking them to military usage. Reports indicate that a list of new targets has been published, including data centres and offices belonging to several US-based tech firms.
The implications of these attacks extend beyond immediate military concerns. They threaten the economic ambitions of the Gulf region, which has invested heavily in technology and AI infrastructure.
War Raises Costs and Risks for Data Centres
Operating a reliable data centre is inherently expensive, requiring significant resources for water and electricity, as well as a highly trained workforce. The costs are expected to escalate in conflict zones. Kristian Alexander, a lead researcher at the Rabdan Security & Defence Institute in Abu Dhabi, noted that protecting data centres from missiles, drones, and other threats adds a layer of complexity and expense.
Insurance premiums are likely to rise, and attracting skilled engineering talent may become more challenging. Data centres are large structures that emit significant heat and are easily identifiable in satellite imagery, making them difficult to conceal.
The two Amazon data centres in the UAE that were struck went offline simultaneously, leading to widespread service disruptions in Dubai and Abu Dhabi, affecting banking, transportation, and food delivery services.
The Internet’s Arteries Could Be Vulnerable
The Middle East is home to a vast network of undersea cables that facilitate global connectivity. Disruption to these cables could have far-reaching consequences. More than 90% of data flowing between Europe and Asia traverses cables beneath the Red Sea. Alternative technologies, such as satellites, can only handle a fraction of the data carried by these undersea networks.
The cables are concentrated in strategic locations, such as the Bab al-Mandab Strait, which has seen attacks on oil tankers. Experts warn that repairing damaged undersea cables in conflict zones poses significant risks.
Recent incidents have highlighted the vulnerabilities of both data centres and undersea cables. A telecom company in Hong Kong reported a 25% disruption in internet traffic due to previous damage to cables in the Red Sea.
As the situation evolves, the implications for digital infrastructure in the Middle East are profound. The targeting of data centres and undersea cables raises critical questions about the future of technology investments in the region.
For more information, visit www.abc.net.au.
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Published on 2026-03-14 22:54:00 • By FAME Delivered News Desk