The Gulf was supposed to power the AI boom. Then the war started.

This article was published on May 24, 2026 Drone strikes hit AWS data centres in the UAE. Oil surged 55%. Gulf AI investment decisions are pausing as the region’s risk profile changes. Two Amazon Web Services data centres in the UAE were targeted early in the Middle East war. Nearly three months later, oil prices remain around $100 a barrel and the Strait of Hormuz remains closed. The Gulf’s ambition to become a global AI hub is facing its first real stress test. Before the conflict began in February, the UAE, Saudi Arabia, and Qatar were racing to position themselves at the centre of the AI boom. Abundant, low-cost energy, strategic geography, and sovereign wealth backing made the region an attractive destination for hyperscalers building data centre networks. That proposition has changed. Investment decisions into some data centre projects have been paused or are taking longer. Pure Data Center Group CEO Gary Wojtaszek told CNBC the company had temporarily paused investment decisions in the Middle East. Mark Richards, partner at law firm BCLP, said decisions “are taking longer because of the nature of the risks associated with effectively being in a region that has some serious t