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“Data embassies” and safeguarding digital assets during wartime
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The drone strikes on Amazon Web Services data centers in the Persian Gulf, and Iran’s threats to target tech firms for their involvement in U.S.
Key facts
- Global data center capacity could reach 200 gigawatts by 2030, doubling capacity, to meet growing demand for AI
- AI data centers alone will require a total capital expenditure of more than $5 trillion, according to consulting firm McKinsey
- The Gulf strikes demonstrate “where AI-era conflict is heading,” Miah Hammond-Errey, founding chief executive of Strat Futures, a risk consultancy, wrote for The Lowy Institute
- Yet as more militaries come to rely on AI technologies from the private sector, the more they will depend on privately owned data centers, raising new concerns, Klaudia Klonowska, a post-doctoral
Summary
Iran’s identification of tech giants as military targets highlights the vulnerability of AI infrastructure in conflict zones. Firms are considering a shift from large, efficient hyperscalers to smaller, distributed data centers and “data embassies” to improve resilience. The integration of civilian and military data on shared servers increases the risk of collateral damage and drives up operational costs for businesses. Global data center capacity could reach 200 gigawatts by 2030, doubling capacity, to meet growing demand for AI.