Data center developer halts Middle East projects after Iran war damage
Pure Data Centre Group, a data center developer based in London, has halted all investments in the Middle East following damage to one of its facilities from an Iranian missile or drone strike. According to CEO Gary Wojtaszek in a CNBC interview, no further capital will be allocated until the situation improves. The conflict erupted after a US-Israeli strike on Iran on February 28, prompting Iran to retaliate by targeting shipping in the Strait of Hormuz, US military installations, and energy infrastructure throughout the Gulf region. This ongoing war is prompting Silicon Valley investors and tech firms to rethink a trillion-dollar initiative to establish AI and cloud data centers in Gulf nations, with developers facing the financial burden of uninsurable war-related damages.
Key facts
- Pure Data Centre Group paused all Middle East project investments after a facility was damaged by Iranian attack.
- The company operates or develops over 1 gigawatt of data center capacity across Europe, Middle East, and Asia.
- CEO Gary Wojtaszek stated no new capital will be invested until the situation settles.
- The conflict began with a US-Israeli attack on Iran on February 28, 2026.
- Iran retaliated by attacking shipping in the Strait of Hormuz, US military bases, and Gulf energy infrastructure.
- The war is causing tech companies to reconsider a trillion-dollar plan for AI and cloud data centers in Gulf countries.
- Developers are absorbing costs of uninsurable war damage.
- The damaged facility is owned by Pure Data Centre Group.
Entities
Institutions
- Pure Data Centre Group
- CNBC
- Silicon Valley
Locations
- London
- United Kingdom
- Europe
- Middle East
- Asia
- Iran
- Strait of Hormuz
- Gulf region