Conviction in the Gulf as a future global hub for AI infrastructure is facing its first stress test with Iranian strikes puncturing the region’s image as a haven for computing power.
Amazon’s cloud-computing facilities in the Middle East suffered power and connectivity issues on Sunday, after its UAE data center was struck by “objects” that caused a fire, the company said. It is one of myriad American tech giants that have been bullish on the region. Microsoft is plunging $15 billion into the UAE, while Nvidia has sought hard-won export licenses to ship advanced chips to Saudi Arabia and the Emirates.
But there are practical solutions to safeguarding these assets, according to Jesse Marks, CEO of Rihla Research & Advisory. One is to ensure contracts allow for critical AI systems “to be shifted to secure facilities in allied countries within minutes of a disruption.” Interestingly, both Saudi Arabia and the UAE are exploring digital embassy frameworks — and Abu Dhabi’s G42 is building data centers, often through government-to-government agreements, in Africa, Asia, Europe, and the US. While the original intention was not a hedge against security threats in the Gulf, those plans now seem prescient.
