How The Iran War Threatens Big Tech’s AI Data Center Buildout In The Middle East
March 12, 2026
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as posted by the channelThe 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
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How The Iran War Threatens Big Tech’s AI Data Center Buildout In The Middle East
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