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The cloud has an address. And that address can burn.
How Iran's strikes on AWS data centres exposed the physical fragility behind the Gulf's trillion-dollar AI bet
by<br>Catrano
in<br>Exclusive Articles, Featured
Reading Time: 3 mins read
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The Middle East’s AI infrastructure boom has hit its first major crisis, as physical attacks on cloud facilities expose the vulnerabilities at the heart of the global digital economy
For years, tech giants were told the same story: come to the Gulf, bring your data, your models, and your chips, and in return you will get stability, sovereign wealth funding, and some of the cheapest energy on the planet. On 1 March 2026, that story ended in fire.
Iranian drone strikes hit three Amazon Web Services (AWS) data centres in the region, two in the UAE and one in Bahrain, in what experts are calling the first confirmed military attack on a hyperscale cloud provider in history. The strikes knocked two of the three availability zones in AWS’s UAE region offline and triggered outages across core services including EC2, S3, and DynamoDB.
The real-world impact was felt immediately. Consumer apps including delivery and taxi platform Careem, payments companies Alaan and Hubpay, and major UAE banks including Emirates NBD and ADCB all reported service disruptions. AWS advised customers to migrate their workloads to alternative regions and warned that recovery would be prolonged given the extent of the physical damage.
A Strategic Target, Not a Coincidence
Iran’s...