AWS teams working around the clock to keep Middle East services up after drone strikes, CEO says

The ongoing conflict in the Middle East has presented significant hurdles for Amazon Web Services (AWS), as highlighted by CEO Matt Garman during a recent interview. In March, AWS reported damage to its data centers in Bahrain and the UAE due to drone attacks, leading to service disruptions in the affected regions. Garman emphasized the company's commitment to maintaining infrastructure, stating, "It's a really difficult situation, and we're working incredibly hard." During the HumanX conference in San Francisco, he revealed that teams are working around the clock to ensure continued service for customers in the impacted areas. According to AWS's status page, numerous services remain offline in Bahrain and the UAE. The situation escalated last week when the Islamic Revolutionary Guard Corps' Navy claimed responsibility for targeting Amazon's data center infrastructure in Bahrain. While Amazon opted not to comment on the specific incident, the implications of the conflict are profound. The rising energy costs, particularly for data centers that support generative AI models, have become a pressing concern since the conflict began in February. Oil prices surged recently following threats from President Donald Trump regarding potential attacks on civilian infrastructure if Iran does not reopen the Strait of Hormuz. Garman noted the broader economic impact, saying, "It's obviously hugely disruptive for the global economy, as we're all very dependent on energy, and also just distracting for industry." As the leading supplier of cloud infrastructure globally, AWS faces competition from companies like Google, Microsoft, and Oracle, all of which are expanding their data center capabilities. Garman pointed out that the effects of the conflict are felt beyond the tech industry, affecting supply chains across various sectors. The restricted movement through the Strait of Hormuz has also driven up helium prices, a critical component in semiconductor manufacturing, with Qatar being a major global supplier. Despite these challenges, Garman expressed optimism about the entrepreneurial spirit in the Middle East, stating, "There's a fantastic entrepreneurial spirit. There's a willingness to invest. And so our excitement about investing long term in that region is just as strong as it's ever been."