The damaged data center is owned by Pure Data Centre Group, a London-based company that is operating or developing more than 1 gigawatt of data center capacity across Europe, the Middle East, and Asia. “No one’s going to run into a burning building, so to speak,” Pure DC CEO Gary Wojtaszek told CNBC. “No one’s going to put in new additional capital at scale to do anything until everything settles down.”
Iran also directly struck two Amazon Web Services (AWS) data centers in the United Arab Emirates, while a near-miss from an Iranian one-way attack drone damaged a third AWS data center in Bahrain. The Iranian attacks caused structural damage, disrupted power delivery, and also triggered fire suppression systems that caused water damage, AWS reported through its service dashboard on March 1.
That led to widespread disruptions in cloud services for AWS customers like banks, payment platforms, the Dubai-based ride-hailing app Careem, and the data cloud provider Snowflake.
Crucially for Amazon’s bottom line, the company chose to waive customer charges in its Middle East cloud region for the entire month of March 2026, as reported by The Register. That decision cost Amazon an estimated $150 million—not including the damaged data centers—because existing civil law frameworks put the financial burden on data center operators to absorb costs and refund clients in the event of military conflicts, according to Tech Policy Press. [...]
Big Tech in the crosshairs
It has been clear for a while that tech companies cannot pretend to be mere bystanders in the ongoing conflict. Iran’s Revolutionary Guard Corps directly threatened retaliation against US companies that it identified as having Israeli links and supporting military tech applications after an Iranian bank’s data center was hit by a US or Israeli strike on March 11. The Iranian military organization released a list of “Iran’s new targets” that included offices and data centers operated by Google, Microsoft, Palantir, IBM, Nvidia, and Oracle, and it reiterated a similar threat against tech companies on March 31 in retaliation for Israeli and US military strikes that resulted in the assassination of Iranian leaders.
The Revolutionary Guard attempted to make good on that threat by attacking an Oracle data center in Dubai, United Arab Emirates, on April 2, according to Data Center Dynamics. Although the Dubai Media Office initially dismissed the claim, it later confirmed that shrapnel had fallen on the facade of the Oracle facility after a “successful aerial interception” by local air defense systems. [...]
Silicon Valley investors and Gulf countries like Saudi Arabia and the United Arab Emirates may also need to rethink plans for making the Middle East into a hub for AI data centers alongside the United States and China, Rest of World reported. US tech companies have each announced plans for data center developments worth billions of dollars, while certain Gulf countries have each pledged hundreds of billions of dollars for investment in AI chips and data centers.
by Jeremy Hsu, Ars Technica | Read more:
Image: Giuseppe CACACE/AFP via Getty Images[ed. It should be obvious that ALL data centers everywhere are sitting ducks for terrorist attacks. Unless owners are ready to pay for military-grade defense systems, this will be an ongoing threat.]
