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Iran hits Amazon data centers in jolt to Gulf AI drive

Drone strikes targeting Amazon Web Services (AWS) data centers in the UAE and Bahrain have highlighted the vulnerability of major cloud infrastructure in the Middle East. AWS has confirmed that two UAE sites were hit, disrupting regional services including banking apps. Analysts believe this marks the first military attack on major “hyperscaler” cloud providers, raising concerns for Gulf states such as the UAE and Saudi Arabia that are investing billions to become global artificial intelligence hubs. The incidents could increase perceived risk for investors and tech companies planning large-scale data center projects in the region, though experts say such infrastructure expansion is still likely to continue despite the security challenges.