AWS Data Centers Hit by Drone Strikes in UAE
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy AMZN?
Source: Newsfilter
- Data Center Damage: Amazon Web Services (AWS) reported that two of its data centers in the UAE and one facility in Bahrain were damaged by drone strikes, indicating a direct threat to operations due to the unstable security situation in the Middle East.
- Fire and Structural Damage: The strikes caused structural damage to the facilities, disrupted power delivery, and resulted in fire incidents, necessitating firefighting efforts that further delayed service restoration.
- Challenges in Service Recovery: While AWS is working to restore services in the affected areas, the nature of the physical damage suggests that recovery will be prolonged, prompting customers to take measures to mitigate the impacts of the ongoing conflict.
- Delivery Delay Warnings: Amazon also warned customers in the Middle East of potential delivery delays as Iran targeted the region with missile and drone strikes, exacerbating logistical uncertainties in the area.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 210.570
Low
175.00
Averages
280.01
High
325.00
Current: 210.570
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Substantial Capital Expenditure Increase: Management expects capital expenditures to reach $200 billion in 2026, sharply up from $131 billion in 2025, reflecting Amazon's ambitious goals in AI and a significant financial commitment to infrastructure development.
- Diversified Revenue Support: Although Amazon's trailing-12-month free cash flow fell to $11.2 billion, its operating cash flow increased by 20% year-over-year to $139.5 billion, demonstrating strong performance in high-margin segments like advertising and subscriptions, enabling self-funding for AI infrastructure investments.
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- Escalating Security Threats: Iran's Revolutionary Guard has designated 18 tech companies, including Oracle, as 'legitimate targets' in retaliation for U.S. and Israeli strikes, indicating the increasing significance of tech assets in conflicts.
- Industry Impact: James Henderson, CEO of risk management firm Healix, noted that the threats against tech companies are part of a sustained pattern, suggesting that future crises may target data centers and cloud platforms as much as traditional strategic sites.
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See More
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See More
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