Middle East's 'Treasure Trove' Vanishes Overnight Due to Iran War
Jakarta, CNBC Indonesia - The Middle East had briefly become a new frontier targeted by global tech giants for building AI data centre infrastructure. For context, a ‘data centre’ is akin to a new ‘treasure trove’ in the digital era, as it is essential for developing AI technology.
Billion-dollar investments in the billions of US dollars have already been poured into data centre projects around the world. However, the Middle East’s precarious position due to Iran’s role has ultimately hindered these data centre projects.
One major data centre company is reportedly delaying investments in AI and data centre infrastructure in the Middle East amid the ongoing Iran war, cited from CNBC International, Wednesday (29/4/2026).
As oil prices soar and supply chains for various components are disrupted by the Middle East conflict, large-scale future digital infrastructure plans in the region are now facing uncertainty.
Assets in the Middle East have become military targets. Shortages of raw components needed to build AI infrastructure also loom.
A data centre in Abu Dhabi, operated by Oaktree-owned Pure DC, was hit by shrapnel from an Iranian attack. The CEO, Gary Wojtaszek, told CNBC International that investments would be suspended for all data centres.
‘No one wants to build data centres and install new GPUs until this situation ends,’ Wojtaszek said to CNBC International.
‘No one wants to run a burning building,’ he added.
This slowdown comes after massive spending in the Middle East from governments, hyperscaler companies, and data centre developers keen to leverage cheap electricity and land, as Middle Eastern countries position themselves as key players in the AI boom.
Pure DC still sees long-term opportunities in the Middle East, Wojtaszek said. He emphasised that long-term planning and discussions around data centre projects there continue.
Pure DC operates in the United Arab Emirates, where one of its data centres in Abu Dhabi was hit by shrapnel. The company had previously planned to expand in Riyadh, Saudi Arabia.
In March 2026, AWS facilities in the UAE and Bahrain were also struck by Iranian drones, causing disruptions to banking, payment, corporate, and consumer services.
‘Although the current macro-political environment may have slowed sector investments, digital demand remains unchanged,’ Wojtaszek said in a statement last week.
‘The ambitious national visions in this region recognise the transformation enabled by digital governance, corporate modernisation, and a future-ready workforce,’ he added.