Pure Data Centre Group, a London-based data center developer, has decided to pause all investments in the Middle East after one of its facilities was damaged by an Iranian missile or drone strike. This move highlights the increasing apprehension among Silicon Valley investors regarding the safety of expanding AI and cloud data centers in Gulf countries. The conflict, which escalated following a US-Israeli attack on Iran on February 28, has seen Iran retaliate by targeting shipping routes and US military bases, as well as directly striking Amazon Web Services (AWS) data centers in the United Arab Emirates and Bahrain. These attacks have resulted in structural damage, disrupted power delivery, and activated fire suppression systems, causing further water damage. As a result, AWS customers, including banks and the ride-hailing app Careem, have experienced significant service disruptions. CEO Gary Wojtaszek emphasized that no new capital will be invested until the situation stabilizes, reflecting the broader hesitance in the tech industry to commit to projects in a volatile environment.