GoKawiilA major data center company has paused investment in AI infrastructure projects and data centers in the Middle East amid the Iran war, its CEO has told CNBC.
As oil prices have skyrocketed and supply chains have been heavily disrupted by conflict in the region, the future of huge digital infrastructure plans in the Middle East has become uncertain.
Assets in the region have become military targets and shortages are predicted for key materials needed for the AI infrastructure buildout. A data center in Abu Dhabi, operated by Oaktree-owned Pure DC, was struck by shrapnel from an Iranian attack.
The company's CEO, Gary Wojtaszek, told CNBC that investment decisions had been paused on "all data center opportunities. No one wants to develop new data centers and put new GPUs in until things get settled."
"No one's going to run into a burning building, so to speak," he said in an interview on Tuesday. "No one's going to put in new additional capital at scale to do anything until everything settles down."
The slowdown follows huge spending in the Middle East from governments, as well as hyperscalers and data center developers looking to take advantage of cheap electricity and land, as Gulf states positioned themselves as key players in the AI boom.
Pure DC still sees "long-term opportunity" in the Middle East, Wojtaszek said, adding that longer-term "planning and discussions" around data center projects there have continued.