US-Iran war threatens global AI and cloud economy

The US-Iran war has highlighted the challenges of establishing the Gulf region as a global hub for data centers and cloud computing. The conflict has extended beyond energy prices to impact modern technological infrastructure, including electronic chips, supply chains, and data centers. Disruptions to global supply chains for gas, helium, and semiconductors pose a direct threat to companies' ability to operate and scale AI models. The war has transformed data centers into strategic targets vulnerable to military strikes, with some facilities coming under direct attack. The closure of the Strait of Hormuz caused widespread disruption to energy supplies, affecting the semiconductor industry and resulting in higher prices and increased production costs. The deep interconnection between Asian chip manufacturing and Gulf resource dependency has disrupted global supply chains and intensified inflationary pressures.