Key Points
- Drone attacks linked to the Iran conflict have damaged AWS facilities in Bahrain and the United Arab Emirates.
- AWS CEO Matt Garman announced continuous around-the-clock efforts to maintain operational capacity in affected regions.
- Multiple AWS cloud services remain offline across both Middle Eastern regions.
- Iran’s Revolutionary Guard Navy has publicly stated it struck Amazon’s Bahrain infrastructure.
- Operational challenges are compounded by escalating energy expenses and helium supply constraints.
Amazon (AMZN) shares climbed 3.68%, gaining $7.87 in extended trading, even as investors absorbed reports of significant disruptions affecting its cloud computing division.
Amazon Web Services finds itself in a battle to maintain Middle Eastern cloud operations following drone strike incidents that inflicted damage on data center facilities located in Bahrain and the United Arab Emirates. These attacks are connected to the intensifying Iran conflict that gained momentum throughout February.
Speaking at the HumanX conference in San Francisco on Tuesday, AWS CEO Matt Garman provided direct commentary on the crisis. “It’s a really difficult situation, and we’re working incredibly hard,” Garman told CNBC. “We have teams, 24/7, working to make sure that we can keep our infrastructure up for our customers in that region.”
AWS’s public status dashboard shows numerous services remain unavailable throughout the Bahrain and UAE regions. A week ago, Iran’s Revolutionary Guard Navy publicly declared it had deliberately struck Amazon’s data center operations in Bahrain. While AWS refused to provide commentary on that specific claim, the company referenced a previous statement acknowledging the Bahrain region “has been disrupted as a result of the ongoing conflict.”
Extended Service Interruptions Across Middle East Zones
This infrastructure crisis cannot be resolved overnight. AWS established its Bahrain presence in 2019 and launched the UAE region in 2022 — both facilities were designed to address expanding cloud computing needs throughout the Middle East, servicing government entities and financial sector clients.
The magnitude of these outages creates substantial challenges for corporate clients who selected these regional zones for data sovereignty compliance. Numerous organizations maintain Middle Eastern operations precisely because local legal frameworks mandate in-country data storage — redirecting operations to European or Asian regions often violates regulatory requirements.
The military conflict is simultaneously driving up operational expenses. Regional energy costs have surged since hostilities commenced in February. Data center operations, particularly those supporting generative AI computing loads, consume massive amounts of electricity. Helium — an essential component in semiconductor production — has also become increasingly difficult to obtain. Qatar, positioned adjacent to the Strait of Hormuz, supplies over one-third of global helium production, and transit through the strait has faced significant restrictions.
On Monday, President Trump issued warnings of potential strikes against civilian infrastructure should Iran fail to reopen the Strait of Hormuz, sending oil prices substantially higher.
AWS Maintains Long-Term Regional Investment Commitment
Notwithstanding the current disruptions, Garman conveyed an optimistic perspective regarding future regional engagement.
“There’s a fantastic entrepreneurial spirit,” he stated. “There’s a willingness to invest. And so our and my excitement about investing long term in that region is just as strong as it’s ever been.”
Google, Microsoft, and Oracle all maintain existing or under-construction data center infrastructure throughout the Middle East. Each provider confronts identical challenges regarding service continuity guarantees when physical assets face military action threats.
An AWS representative acknowledged the Bahrain service disruption but declined to provide restoration timelines. The company’s official status page continued displaying multiple unavailable services across both Bahrain and UAE regions as of Tuesday afternoon.
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