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- Data embassies floated as war risk grows for Gulf AI data centers
Drone strikes on Amazon Web Services data centers in the Persian Gulf, and Iran's naming of 18 companies — including Amazon, Google, Microsoft, Nvidia, Palantir and G42 — as "legitimate targets," have spotlighted the exposure of AI infrastructure to conflict, Rest of World reports. The article examines responses: shifting away from easily identifiable hyperscalers toward smaller distributed facilities, separating military systems from civilian ones, or adopting "data embassies" — foreign-hosted data centers that keep a guest nation's data under home-country sovereignty, as Estonia and Monaco do in Luxembourg and as Saudi Arabia's draft AI law would allow. Analysts quoted said data embassies are "elegant in theory but highly complex in practice," requiring bilateral agreements with no global legal framework, while AWS did not answer whether its Gulf facilities processed military or intelligence data.
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