Iran War: Pure Data Centres Halts Middle East Developments

A major data centre company has halted investment decisions and developments in the Middle East, according to reporting by CNBC.

The decision follows collateral damage to one of the company's data centres from Iranian attacks.

Pure Data Centres Group, which operates in the United Arab Emirates, had its Abu Dhabi data centre on Yas Island hit by shrapnel from a nearby strike.

Since the impact on its facility and wider disruption to digital infrastructure across the Gulf, Gary Wojtaszek, Pure Data Centres' CEO, made the executive decision to pause further data centre plans in the region.

Before the halt, the company had plans to expand in Saudi Arabia's capital, Riyadh.

As energy prices have risen and supply chains have been disrupted by the conflict, investing in digital infrastructure in the region during this time would pose financial risks and uncertainty for data centre investors.

Gary Wojtaszek told CNBC that the pause applies to "all data centre opportunities."

He added: "No one wants to develop new data centres and put new GPUs in until things get settled.

"No one's going to run into a burning building, so to speak. No one's going to put in new additional capital at scale to do anything until everything settles down."

Conflict disrupts data centre operations

Pure Data Centres is not the only company which has faced disruptions to its facilities. In March, AWS infrastructure in the UAE and Bahrain was hit by Iranian drones.

OpenAI's Stargate project also faced direct threats from the Iranian Revolutionary Guard Corps, along with several more 'Big Tech' companies.

According to AWS, two of its data centres were hit directly, while one drone strike hit the ground nearby a facility in Bahrain.

Incidents like these can lead to outages across banking, payments and both enterprise and consumer platforms – all scenarios that CEO Gary Wojtaszek clearly aims to avoid.

Despite the pause, Gary said that the Middle East still represents a “long-term opportunity” for the company.

Planning and discussions linked to future projects are still progressing, even as immediate investment decisions are on hold.

In a statement, Gary told CNBC: “While the current macro political environment may have slowed sector investment, digital demand remains unchanged.

“The region’s ambitious national visions recognise the transformation enabled by digital government, enterprise modernisation and a future ready workforce.”

Governments and data centre operators have placed huge spending in the Middle East for its offer of lower-cost electricity and land, aiming to meet demand for cloud and AI services.

Workforce and remote operations in focus

As data centres take on the role of critical infrastructure, workforce considerations have become more complex.

Safety concerns have increased for onsite staff as facilities face heightened risk.

Pure DC has introduced measures to support employees in the region.

Non-essential staff will receive the option to relocate with their families and continue working remotely, while those who work onsite will be provided with additional welfare support.

Gary said: “We’re not mandating anyone be in the facility, they have to make a decision based on what’s right for them and their family... It’s a really tough situation.”

He added that on-site employees will receive “additional comfort”.

The company also reviewed how facilities can be managed through electronic systems, reducing reliance on physical presence.

Remote operations in data centres allow monitoring and control of infrastructure using digital tools, which is increasingly important where in-person access to sites is unsafe or restricted.

Investment continues outside the region

While activity has now slowed in the Middle East, Pure DC continues to invest in other markets.

In December, the company confirmed plans to invest more than €1bn (US$1.2bn), in the Netherlands to develop a 78MW data centre campus in Westpoort, Amsterdam.

The site has been fully leased to a hyperscale customer, marking what the company describes as the largest stand-alone hyperscale data centre lease in Europe in 2025.

Planning consent is in place and 100MVA of power has been arranged via a private substation, ensuring a dedicated electricity supply for the campus.

While the Middle East offers strong fundamentals for growth, current risks have led operators to redirect capital and focus on stable environments where construction and operation can proceed without disruption.