🇺🇸💻🇮🇷 Iran Puts America’s Gulf AI Boom on Notice

Amazon, Microsoft and Google are pouring billions into Persian Gulf data centers. Iran has warned that another US attack could put those investments, along with the undersea cables connecting them, in the line of fire.

On October 10, Iranian security chief Mohsen Rezaei said US-linked data centers, AI facilities and communications infrastructure across the region could become targets if America attacks Iran again.
He estimated the value of these assets at more than $2T. Rezaei stressed that Iran had not yet designated them as targets.

The warning comes as American tech giants invest heavily in turning the Gulf into a global computing hub.

Microsoft has committed $15.2B to the UAE through 2029, expanding its cloud and AI infrastructure alongside local partners. Google Cloud and Saudi Arabia's sovereign wealth fund have announced a $10B AI hub, while Amazon is investing more than $5.3B in a Saudi cloud region.

And plenty of infrastructure is already operating.

Amazon Web Services runs cloud regions in the UAE and Bahrain. Microsoft has facilities in Dubai, Abu Dhabi and Qatar, while Google and Oracle operate across Saudi Arabia and other Gulf markets.

The danger is hardly theoretical.

During the earlier US-Iran war in March, drone strikes damaged two AWS facilities in the UAE and affected another in Bahrain. Amazon confirmed structural damage, power failures and service outages that disrupted businesses and financial institutions.

Recovery proved difficult. Physical damage to cloud infrastructure can take far longer to repair than an ordinary software outage.

The region's digital connections are also exposed at sea.

Undersea fiber-optic cables running through the Persian Gulf and Strait of Hormuz connect regional networks to international communications systems. A major disruption could affect cloud access, banking services and data traffic far beyond the damaged infrastructure itself.

That makes the economic stakes considerably wider than the balance sheets of American technology companies.

Gulf governments are investing heavily in AI and cloud computing to diversify their economies. Local companies provide land, electricity and infrastructure, while US firms supply computing hardware, software and cloud platforms.

Those partnerships also tie American commercial interests more closely to the security of the countries hosting them.

Rezaei's warning expands Iran's deterrence message beyond military bases and oil facilities. American technology investments, he argues, could also become vulnerable if the US launches another attack.

For Gulf governments betting billions on becoming global AI hubs, the March AWS outages have already demonstrated how quickly a regional war can interrupt the digital services their economies increasingly depend on.

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