Iran conducts airstrikes in the UAE, AWS data center catches fire! Hundreds of billions of dollars in AI computing power become strategic resources

Iran responds to U.S. and Israeli airstrikes, launching counterattacks against countries hosting U.S. military bases south of the Persian Gulf. Meanwhile, AWS reports that a data center in the UAE was struck by an object, causing a fire and power outage. This article introduces the computing power deployment in Gulf countries and how cloud centers are becoming new battlegrounds in digital warfare.

Gulf Computing Power Strategy Takes Shape: UAE, Saudi Arabia, and MGX’s Billion-Dollar Investments

The outdated perception that Arab countries rely solely on oil is no longer accurate. In recent years, Arab nations have heavily invested in data centers and cloud infrastructure, aiming to become AI computing hubs connecting Europe, Asia, and Africa. The UAE is currently one of the most mature Gulf markets for computing power, with Khazna Data Centers, developed by G42 and telecom operator e&, planning over 300MW capacity, making it one of the largest data center operators in the Middle East.

AWS, Microsoft Azure, and Oracle have established or expanded cloud regions. AWS has a dedicated region in the UAE, and the recent incident involved one of its data centers being struck and catching fire. Microsoft announced a $15 billion investment in AI and cloud infrastructure in the UAE. Nvidia is also seeking approval to export advanced GPUs to Saudi Arabia and the UAE.

Bahrain is among AWS’s earliest regional deployments in the Middle East, while Saudi Arabia is pushing large-scale data center projects with national capital, engaging in an “AI infrastructure race” with the UAE. Both countries have invested billions of dollars in AI data centers and cloud infrastructure; Saudi Arabia’s planned data center capacity (MW) leads other Middle Eastern nations. Major cloud providers (AWS, Google Cloud, Oracle, Microsoft Azure) are all establishing presence in Saudi Arabia to serve MENA, parts of Africa, and South Asia.

The Ghost Leader Tahnoon, Connecting Sam Altman, CZ, and Governments

In this wave of computing power buildup, one of the key financial players is MGX. Founded in Abu Dhabi, MGX is an AI and infrastructure investment fund considered part of the UAE sovereign wealth funds, managing numerous tech investments including AI and cryptocurrencies. It previously invested $2 billion in Binance. Tahnoon, the powerful figure behind MGX, is the younger brother of the UAE president, serving as national security advisor and controlling a vast capital network spanning AI, energy, surveillance technology, and sovereign investments, totaling over $1.3 trillion.

(WSJ: UAE Royal Family Members Control Trump’s Cryptocurrency WLFI Stake)

During the Biden administration, Tahnoon’s efforts to acquire U.S. AI chips faced obstacles, mainly due to concerns that G42 might transfer technology to China. Although G42 claimed to have severed ties with Chinese companies in 2023, suspicions remain. MGX is also an investor in OpenAI. In 2025, Abu Dhabi announced the Stargate UAE data center project. When discussing Stargate UAE, Altman publicly stated: “Sheikh Tahnoon has been a great supporter of OpenAI, a true believer in AGI, and a dear personal friend” (Tahnoon is a strong supporter of OpenAI, a true believer in AGI, and a close personal friend).

Iran Airstrikes on Data Centers: AWS UAE Fire, Bahrain and UAE Connection Anomalies

Yesterday, AWS officials reported that a data center in the UAE was struck by an object, causing a fire and ongoing power outages. Some services were forced to shut down or shift loads. Connection issues and error rates increased in AWS Bahrain and UAE regions. The company advised clients to temporarily switch to other regions.

Impacted areas include:

• E-commerce and SaaS platforms

• Fintech services

• Regional government and enterprise cloud systems

Data Centers Will Be Prime Targets in the AI Era

A 2026 industry report estimates that the Middle East’s data center capacity will reach about 1.82GW in 2025 and grow to 2.84GW by 2030. Including planned and under-construction projects, the region’s total capacity goal over the next five years is approximately 6.1GW. Globally, data centers typically consume tens of gigawatts of IT power, with Middle Eastern capacity accounting for about 3–5%, mainly concentrated in the UAE and Saudi Arabia. From a global supply perspective, the impact of this incident remains limited.

The main centers of AI computing power are still concentrated in North America and Europe, with large Gulf AI super data centers still under construction. Major cloud providers design their architectures with multiple AZs and regions to mitigate risks. AWS explicitly recommended customers use other regions in their incident statement, demonstrating that key cloud-native clients can maintain operations through failover within hours, albeit with increased costs and latency.

From the 2019 attack on Saudi Aramco’s facilities to the 2024 submarine cable cut in the Red Sea and now this UAE data center incident, the battlefield is shifting from energy infrastructure to digital infrastructure. While it’s unclear if Iran intentionally targeted data centers, it’s certain that as AI advances, computing power has become a new strategic resource. If conflicts escalate, critical nodes like data centers, cloud providers, and submarine cables will almost certainly become targets.

This article, “Iran Airstrikes on UAE, AWS Data Center Fire! Billion-Dollar AI Computing Power Becomes Strategic Asset,” first appeared on Chain News ABMedia.