Major data center company pauses investment decisions in Middle East amid Iran war, CEO tells CNBC
A major data center company has paused investment decisions on AI infrastructure and data centers in the Middle East due to ongoing conflict involving Iran, according to CEO Gary Wojtaszek. Disruptions in supply chains, rising oil prices, and physical damage to facilities like a Pure DC site in Abu Dhabi have heightened regional risks. The company is halting new capital deployment until the situation stabilizes, though long-term planning continues. Previously, the region attracted significant investment due to low-cost energy and land.
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A major data center company has paused investment in AI infrastructure projects and data centers in the Middle East amid the Iran war, its CEO has told CNBC.As oil prices have skyrocketed and supply chains have been heavily disrupted by conflict in the region, the future of huge digital infrastructure plans in the Middle East has become uncertain. Assets in the region have become military targets and shortages are predicted for key materials needed for the AI infrastructure buildout. A data center in Abu Dhabi, operated by Oaktree-owned Pure DC, was struck by shrapnel from an Iranian attack. The company's CEO, Gary Wojtaszek, told CNBC that investment decisions had been paused on "all data center opportunities.
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