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Data-Center Strike Halts Middle East AI Plans

Ars Technica •
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Pure Data Centre Group halted all Middle East projects after a missile strike damaged one of its facilities. The London‑based firm, which runs over 1 GW of capacity worldwide, said the incident forced a pause while investors reassess risk. This pause echoes broader concerns as the Iran‑Israel war threatens data‑center stability for developers, cloud providers, and insurers worldwide and investors again.

Amazon Web Services suffered multiple strikes, with two data centers hit and a third narrowly missed by an Iranian drone. The attacks triggered fire suppression and water damage, disrupting services for banks, payment platforms, Careem, and Snowflake. AWS waived customer charges for March 2026, costing the company an $150 million, while the civil law framework forced operators to absorb the loss.

Pure DC’s Yas Island campus, already running 20 MW for an unnamed hyperscale client, suffered shrapnel damage that may have been a near‑miss. Despite the setback, CEO Gary Wojtaszek reaffirmed the Middle East as a long‑term opportunity, citing new utility approvals that allow capacity expansion. The incident underscores a shift toward smaller, distributed sites and heightened defense measures for data‑center operators.