Economy

Amazon Data Centers Disrupted in UAE, Bahrain Amid Regional Conflict

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Alanbatnews -

Amazon's cloud computing operations have been disrupted in the United Arab Emirates and Bahrain following drone attacks linked to escalating tensions in the Middle East, the company confirmed on Monday.

The attacks, which damaged Amazon Web Services (AWS) facilities, have raised concerns about the vulnerability of critical digital infrastructure in the region and the pace of expansion by major technology firms.

The disruption has impacted numerous essential cloud services, prompting Amazon to advise customers to back up critical data and shift operations to unaffected servers.

According to a source familiar with the matter, financial institutions relying on AWS services have been affected by the outage. The source requested anonymity due to the sensitivity of the situation.

“While we are working to restore these services, the ongoing conflict in the region means that the broader operating environment in the Middle East remains unpredictable,” the AWS unit stated.

AWS reported that two of its facilities in the UAE sustained direct hits, while a drone strike near a facility in Bahrain caused physical damage to its infrastructure.

“These strikes caused structural damage, disruption to power supplies to our infrastructure, and in some cases required fire suppression measures, resulting in additional water damage,” the company stated in an update.

The company is working to fully restore service, but anticipates a prolonged recovery period due to the extent of the physical damage.

The incident marks the first time a data center belonging to a major U.S. technology company has been disrupted due to military action.

American technology giants view the UAE as a regional hub for artificial intelligence-based computing necessary to run services such as ChatGPT.

In November, Microsoft announced plans to increase its total investment in the UAE to $15 billion by the end of 2029, equipping its data centers there with Nvidia chips.

Microsoft, Google, and Oracle, which also operate facilities in the UAE, have yet to respond to requests for comment.

The attacks follow a recent barrage of drones and missiles launched by Iran towards Gulf states, reportedly in response to U.S. and Israeli strikes that resulted in the death of Iranian leader Ali Khamenei.