The Tech Download: Data centers become military targets as Iran war rages on

Recent events have highlighted the precarious intersection of technology and military conflict, particularly as data centers in the UAE came under attack from Iranian drone strikes last Sunday. This assault disrupted various banking, payment, and consumer services, emphasizing the vulnerability of critical digital infrastructure in today's geopolitical landscape. Following joint U.S. and Israeli military actions against Iran, Tehran retaliated with a series of strikes across the Middle East, notably targeting military installations, energy facilities, and crucial data centers. Estimates suggest there are over 200 data centers in the region, with U.S. tech giants increasingly investing in these facilities due to the availability of cheap energy and land. Patrick J. Murphy, the executive director of the geopolitical unit at Hilco Global, noted that the recent drone attacks on UAE data centers signify a shift in how such infrastructures are perceived. "Historically, Iran and its proxies have focused on oil fields, but this week's actions indicate that data centers are now seen as critical infrastructure," he stated. In a statement on Monday, AWS confirmed that two of its data centers in the UAE were directly targeted, with another facility in Bahrain suffering collateral damage. Iranian state media reported that these strikes were linked to the support AWS has provided to U.S. military operations. In light of these incidents, companies relying on AWS services were prompted to shift their operations to alternative locations to mitigate service disruptions. By Friday morning, AWS continued to classify its services in the UAE as "disrupted." Governments worldwide have increasingly recognized the strategic significance of data centers, with the U.S. identifying them as part of its critical infrastructure sectors and the U.K. designating them as essential national assets. The EU and several other countries have followed suit, acknowledging the importance of these facilities in maintaining national security. However, the escalation of drone warfare has raised urgent questions about the security of the digital platforms that underpin modern life. Murphy indicated that the targeting of data centers by Iran could compel governments to integrate them into their national security frameworks, alongside traditional infrastructure such as energy and transportation networks. While many digital services have been restored in the wake of the attacks, experts suggest that organizations will need to reassess their strategies regarding multi-region data backups. Scott Tindall, a partner at Hogan Lovells, emphasized that even seasoned data center operators will need to revisit their geopolitical risk assessments in light of these developments. Meanwhile, as tensions continue in the region, tech companies with operations in the Middle East are working rapidly to adapt. Xiaomi has announced plans to release a new smartphone processor annually, reflecting their ambition to innovate in the technology sector. In a separate context, OpenAI's CEO Sam Altman noted the company's haste in securing a recent contract with the U.S. Department of Defense, acknowledging the perception it may have created amid ongoing debates surrounding AI technology and its ethical implications.