AI hyperscalers scramble as Gulf War poses data center risks - Rest of World

To avoid collateral damage, countries consider ditching giant server hubs for smaller, distributed ones—especially now that military and civilian data live side-by-side.

Giuseppe CACACE / AFP via Getty Images By Rina Chandran 6 April 2026 Iran’s identification of tech giants as military targets highlights the vulnerability of AI infrastructure in conflict zones. Firms are considering a shift from large, efficient hyperscalers to smaller, distributed data centers and “data embassies” to improve resilience. The integration of civilian and military data on shared servers increases the risk of collateral damage and drives up operational costs for businesses. The drone strikes on Amazon Web Services data centers in the Persian Gulf, and Iran’s threats to target tec

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