Amazon AWS data center hit in UAE, triggering major regional cloud outage

A major outage has disrupted cloud services across parts of the Middle East after facilities operated by Amazon Web Services (AWS) in the United Arab Emirates were struck by unidentified objects, triggering a fire and widespread power failure.

According to AWS, the incident began late Sunday when the impact caused damage to critical infrastructure, forcing authorities to shut down power to multiple data centre clusters. The company said restoration efforts are ongoing, but full recovery could take “many hours.”

The outage has affected services in both the UAE and neighbouring Bahrain, disrupting several core cloud-based systems.

Financial institutions appear to be among the worst affected. One source confirmed that banks relying on AWS infrastructure faced operational disruptions. Abu Dhabi Commercial Bank reported that its mobile app and digital platforms were temporarily unavailable due to a broader IT issue.

AWS has advised customers to back up critical data and shift operations to unaffected regions to minimise losses.

The incident coincides with escalating tensions in the region. On the same day, Iran reportedly launched drones and missiles toward Gulf states following recent U.S. and Israeli strikes.

While officials have not confirmed whether the AWS facility was directly targeted, analysts say the timing raises serious concerns about the vulnerability of digital infrastructure in conflict zones.

A recent report by the Centre for Strategic and International Studies warned that modern conflicts may increasingly target data centres and communication networks alongside traditional energy infrastructure.

The UAE has been positioning itself as a regional hub for artificial intelligence and cloud computing, attracting major global technology firms.

Companies including Microsoft, Google, and Oracle have expanded operations in the country. Microsoft alone has pledged billions in investment to scale its data centre presence in the region.

Experts say this incident could prompt a reassessment of risk as geopolitical instability increasingly intersects with critical digital infrastructure.

AWS says teams are working to restore services as quickly as possible, but disruptions are expected to continue in the short term.

The company has not yet confirmed the exact nature of the objects that struck the facility.