How The Iran War Threatens Big Tech’s AI Data Center Buildout In The Middle East

From CNBC.

The Gulf region has been a hotbed for AI investment, with the UAE, Qatar, and Saudi Arabia pouring sovereign wealth dollars into data centers and courting companies like OpenAI to build out their global presence. But the war in Iran is now threatening that future. Drone strikes on Amazon facilities in Bahrain and the UAE have forced tech companies to rethink the safety and viability of that expansion. As AI becomes an increasingly powerful tool in modern warfare, data centers are emerging as strategic targets, raising the stakes for every company invested in the region. CNBC’s Kate Rooney explores what this means for hyperscalers like Google, Microsoft, Amazon and others, and whether the conflict could mean steeper costs and longer timelines for the infrastructure powering the AI race.

Produced by: Jeffrey Kopp
Reporter: Kate Rooney
Edited by: Ryan Baker, Andrew Evers
Animation: Emily Park
Senior Director of Video: Jeniece Pettitt
Additional Footage: Getty Images, Reuters

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Want to get ahead at work with AI? Sign up for CNBC’s new online course, Beyond the Basics: How to Use AI to Supercharge Your Work. Learn advanced AI skills like building custom GPTs and using AI agents to boost your productivity today. Sign up today: https://cnb.cx/4qKBe6H

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC

#CNBC

How The Iran War Threatens Big Tech’s AI Data Center Buildout In The Middle East