Iranian threats put Gulf internet and global data at risk

Iran’s threats to target data centres, artificial intelligence facilities and undersea internet cables have raised concerns about the security of digital infrastructure across the Gulf. Any major disruption could affect internet connectivity between Europe and Asia, while putting banking services, cloud computing and technology investments at risk.

According to a report by Al Jazeera, Iranian security official Mohsen Rezaei has warned that critical digital infrastructure across the region could become a target if hostilities with the United States resume. The warning comes amid continuing regional tensions and growing concerns about the security of key telecommunications routes near Yemen and the Red Sea.

More than 90 per cent of data transmission capacity between Europe and Asia passes through undersea cables in the Red Sea, according to estimates cited in the report. These cables enter the waterway through the Bab al-Mandeb Strait, a strategically important passage connecting the Red Sea with the Gulf of Aden.

The narrow maritime route has become a major concern because of fighting between Yemen’s internationally recognised government and the Iran-backed Houthi movement. Control of territory near the strait could increase security risks for vessels, telecommunications infrastructure and repair operations.

Undersea cables carry vast amounts of international internet traffic. They support online banking, business communications, cloud platforms and government services. Damage to these cables could force data traffic onto alternative routes, potentially slowing connections and disrupting services across several countries.

Data centres are another potential vulnerability. These facilities provide the computing power and storage required for cloud services, digital payments and artificial intelligence systems. Their operations depend on reliable electricity, cooling systems and telecommunications links. Even damage to supporting infrastructure could force a facility to suspend operations without directly destroying its servers.

Iran has previously issued threats against US technology companies operating in Israel and Gulf countries. In March, Iranian state-linked media reported that the Islamic Revolutionary Guard Corps had identified cloud infrastructure associated with companies including Google, Microsoft and Oracle as potential targets. A separate list reportedly included Meta, Apple and the Emirati artificial intelligence company G42.

The concerns are not limited to potential future attacks. Amazon Web Services reported in March that two of its facilities in the United Arab Emirates had been directly struck by drones, while another strike near a facility in Bahrain caused physical damage to infrastructure. In September, the company said some locations in Bahrain and the UAE remained unavailable.

Undersea cable disruptions have also affected the region in recent years. Three cables were damaged in February 2024, with industry assessments pointing to the possible role of a dragging ship anchor after a Houthi missile attack disabled the vessel Rubymar. The damage required lengthy repair work. In September 2025, two cables were cut near Jeddah, slowing internet access across parts of the Middle East and South Asia. The cause of that incident was not confirmed.

The Houthis have not been directly linked to a confirmed deliberate attack on undersea internet cables, and the group has denied responsibility for the 2024 damage. However, the strategic importance of the Bab al-Mandeb Strait has increased concerns about the potential consequences of further fighting in the area.

Countries and technology companies are exploring alternative routes to reduce dependence on the Red Sea corridor. Iraq has signed an agreement with Qatar’s Ooredoo to develop a land-based data route connecting the Gulf with Europe through Iraqi territory towards Turkiye. Ooredoo’s international arm has also agreed to acquire fibre capacity from Iraq’s iQ Networks to extend the route, subject to government approval.

Microsoft has separately announced plans to invest more than $400 million in undersea and land connectivity across the Middle East by 2030. Such projects could provide additional routes for international data traffic, although building alternative infrastructure requires time and substantial investment.

The threats pose a challenge to Gulf countries seeking to establish themselves as global technology and artificial intelligence hubs. The United Arab Emirates is developing the Stargate UAE project with OpenAI, Nvidia and other partners as part of a planned large-scale AI campus. Saudi Arabia has also invested in artificial intelligence through Humain, while Qatar has attracted investment in data centres.

Microsoft announced in September plans to invest more than $10 billion across Kuwait, Qatar, Saudi Arabia and the UAE through 2030, with an emphasis on digital resilience. However, the risk of infrastructure damage could increase operating costs and encourage technology companies to reconsider where they locate data centres and other critical facilities.

Security experts believe that protecting these networks will require greater geographical diversity, alternative communication routes and stronger safeguards for essential infrastructure. Gulf governments may also face difficult choices between keeping sensitive data within national borders and distributing facilities across multiple locations to reduce the risk of disruption.

The impact of any future attack would depend on the scale of the damage and the availability of alternative systems. Although global internet networks have backup routes, simultaneous disruptions to several key cables or facilities could cause widespread problems.

Iran’s warnings therefore highlight the growing importance of digital infrastructure in regional security. As Gulf economies increasingly depend on artificial intelligence, cloud computing and international connectivity, the protection of data centres and undersea cables is becoming a major economic and strategic priority.