Washington, Aug 04 (V7N) – Artificial intelligence (AI) data centers, considered critical infrastructure for the global digital economy, have emerged as a new strategic target in the ongoing conflict between the United States and Iran, raising fresh concerns over the security of the world's expanding AI ecosystem.

According to analysts, Iran has increasingly focused on inflicting economic damage rather than relying solely on conventional military responses. In recent months, Tehran has targeted oil facilities, export infrastructure and tourism assets across parts of the Middle East, causing significant economic disruption in the Gulf region.

Data centers are now being drawn into that strategy.

These facilities provide the massive computing power required for AI technologies and cloud services, making them essential to both economic growth and national security.

Reports indicate that Iran has targeted several data centers in neighboring countries, while the United States has also carried out strikes against an Iranian data center.

Although cyberattacks on data centers have been common for years, experts say the use of missiles and bombs against such facilities represents a significant escalation and introduces a new dimension to modern warfare.

Data Centers Become a New Battlefield

According to reports, at least five data centers across the Gulf region have been targeted since the conflict intensified, including an Amazon facility in Bahrain.

The Bahrain facility was reportedly struck by a second Iranian missile attack late last month. While Amazon has declined to comment publicly, Amazon Web Services (AWS) has continued reporting service disruptions in the region since the initial attack on April 30.

Satellite imagery has also reportedly shown significant damage to the AWS complex.

Iran has openly declared data centers to be legitimate military targets.

The Islamic Revolutionary Guard Corps (IRGC) reportedly published a list of 29 technology facilities across the region that it considers potential targets, including facilities associated with Amazon, Google, Microsoft and Nvidia.

Following the July 21 attack on Amazon's Bahrain data center, Iranian authorities claimed on Telegram that the facility supported US military intelligence operations through cloud computing services.

Amazon is among the companies participating in the US government's nearly $9 billion Joint Warfighting Cloud Capability (JWCC) program, alongside Google, Microsoft and Oracle.

Gulf States Pursuing AI Leadership

Beyond their military significance, Gulf data centers play a central role in regional ambitions to become a global AI hub.

Saudi Arabia has pledged approximately $1 trillion for AI-related investments.

The United Arab Emirates has also partnered with the Trump administration on the proposed $500 billion "Stargate" AI data center initiative, regarded as one of the largest AI infrastructure projects planned outside the United States.

OpenAI, Oracle, Nvidia and Cisco are among the companies participating in the project.

Meanwhile, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE have jointly pledged more than $2 trillion in AI-related investments with the United States, subject to reducing reliance on Chinese technology.

Analysts say these growing ties have made Gulf AI infrastructure increasingly vulnerable to becoming part of the broader geopolitical confrontation.

Helima Croft, Head of Global Commodity Strategy at RBC Capital Markets, said attacks on AI infrastructure could undermine investment confidence and slow the Gulf region's ambitions to become a major technology hub.

She added that the conflict has highlighted the increasingly important role technology companies play in both national security and international diplomacy.

Why Data Centers Are Becoming Targets

Experts identify two main reasons behind the growing focus on AI infrastructure.

First, AI systems have become deeply integrated into the economies and security operations of both the United States and Gulf countries. Even relatively inexpensive drone attacks can therefore cause significant economic disruption.

Second, governments may increasingly view commercial cloud infrastructure as having dual civilian and military uses.

Andrew Reddie, a public policy professor at the University of California, Berkeley, noted that modern data centers often support both commercial services and military operations.

"There is no sign on a data center indicating military information is stored there," he said, adding that facilities can simultaneously host commercial applications and military-related workloads.

From Iran's perspective, he suggested, an Amazon facility involved in US government cloud contracts may appear to be a legitimate strategic target.

Can Data Centers Be Protected?

Industry experts say defending data centers against missile and drone attacks presents major challenges.

Philip Ray, Head of Property at insurance company MSIG USA, described data centers as large warehouses filled with extremely valuable computing equipment.

He said it is nearly impossible to fully protect such facilities against direct military attacks.

Instead, operators rely on redundancy—maintaining backup systems and duplicate computing capacity at multiple locations.

Originally designed to address natural disasters, cable failures and technical outages, these backup systems now also provide resilience against military attacks by allowing services to shift to other facilities if one site is damaged.

Investment Risks Growing

Despite the security concerns, Gulf governments continue investing heavily in AI infrastructure.

However, analysts believe international technology companies may become more cautious before expanding their presence in the region.

Professor Reddie said companies may reconsider investments if they believe critical infrastructure cannot be adequately protected.

Insurance costs for AI infrastructure have also increased sharply.

Joe Maszak, who leads the Digital Infrastructure Property Practice at insurance broker Marsh in the United States, said recent attacks have prompted both technology companies and insurers to reassess their exposure to regional risks.

Some insurers have become increasingly reluctant to underwrite certain projects, while companies cannot rely solely on insurance to offset growing security threats.

At the same time, demand for AI has driven up the costs of chips, construction materials, energy and skilled labor worldwide.

Analysts say that if increasingly expensive AI data centers become regular military targets during armed conflicts, protecting those investments could become one of the technology industry's biggest long-term challenges.

END/SMA/AJ