Amazon Shuts UAE Data Center After Strike Sparks Fire Amid Escalating US-Iran War: Retail Traders See ‘Nothing Good To Expect’

• Amazon said it shut down one of its data centers in the UAE on Sunday.
• The U.S. and Iran are dropping bombs on each other, with some landing on Iran’s neighbouring regions.
• Investors are watching whether more data center firms, such as Microsoft and Alphabet, report similar disruption, which would risk disrupting the global internet and services.

Amazon.com Inc. cut power to one of its data centers in the United Arab Emirates and shut it down on Sunday after a part of the facility was struck, causing a fire.

"At around 4:30 AM PST, one of our Availability Zones (mec1-az2) was impacted by objects that struck the data center, creating sparks and fire,” Amazon Web Services told Reuters in a statement. It will take several hours to restore connectivity in the affected zone, the data center operator said.

The U.S. and Iran are firing bombs and drones at each other’s bases in the Middle East as well as on neighboring regions, after the U.S. and Israel bombed multiple Iranian cities on Saturday and killed the country’s Supreme Leader, Ayatollah Ali Khamenei.

Amazon, however, did not confirm or deny whether the incident at the data center was connected to the strikes, according to Reuters.

US-Iran War Causing Big Damage

Bombs reportedly hit and caused casualties in Iran’s neighbouring countries, Kuwait, Bahrain, Qatar, and the United Arab Emirates, as well as Israel, the media reported.

The significant escalation is causing ripples across the financial markets. The U.S. futures are down sharply, oil prices are up, and investors appear to be moving their money to safe-haven assets like gold, pushing its price higher as well.

In a video posted Sunday on Truth Social, U.S. President Donald Trump said the U.S. military would continue bombing Iran until its objectives are achieved.

Retail Reaction For AMZN

On Stocktwits, retail investors took notice of news about Amazon’s UAE data center, and broadly discussed AMZN stock pressure amid the market selloff. Retail sentiment for Amazon was ‘bearish,’ unchanged in the past five days.

“It is difficult to say what will be in middle term due IRAN-war. Nothing good to expect, if escalation will late months. Recession is unavoidable,” said a user.

Amazon UAE Data Center Update

Amazon is the first to report a data center disruption following the geopolitical escalation. Alphabet, Microsoft and Alibaba also have huge data center facilities around the world, which underpin most of the world’s Internet and online services. In the event of more disruption, businesses would lose money.

Amazon said the UAE’s fire department shut off power to its facility and generators as they worked to put out the fire. It awaits permission to turn the power back on. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: ‘Big Short’ Investor Michael Burry Says US Military’s Claude AI Phase-Out Proves Pentagon Can’t Rely On Palantir Alone

Share

·

Add us on