Drone strikes on data centers spook Big Tech, halting Middle East projects

A data center developer has paused all Middle East project investments after one of its facilities was damaged by an Iranian missile or drone attack. The decision comes as the Iran war is forcing Silicon Valley investors and tech companies to rethink a trillion-dollar plan to build more AI and cloud data centers in Gulf countries.

The damaged data center is owned by Pure Data Centre Group, a London-based company that is operating or developing more than 1 gigawatt of data center capacity across Europe, the Middle East, and Asia. “No one’s going to run into a burning building, so to speak,” Pure DC CEO Gary Wojtaszek told CNBC. “No one’s going to put in new additional capital at scale to do anything until everything settles down."

Data center developers are already eating the costs of uninsurable war damage from the conflict, which began with a US-Israeli attack on Iran on February 28. Iran primarily responded by attacking shipping to shut down the Strait of Hormuz trade corridor along with striking US military bases and energy infrastructure across the Gulf region.

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