Pure Data Center Group, owned by Oaktree, has paused all investment decisions related to data center projects in the Middle East due to the ongoing Iran war, according to CEO Gary Wojtaszek [1]. The conflict has led to skyrocketing oil prices and significant supply chain disruptions, casting uncertainty over the region's ambitious digital infrastructure plans [1]. Wojtaszek stated, 'No one wants to develop new data centers and put new GPUs in until things get settled,' emphasizing that no additional capital will be deployed at scale until the situation stabilizes [1].
The company operates in the United Arab Emirates, where its Abu Dhabi data center on Yas Island was recently struck by shrapnel from an Iranian attack [1]. Pure DC also has expansion plans in Riyadh, Saudi Arabia [1]. In March, AWS facilities in the UAE and Bahrain were hit by Iranian drones, resulting in outages across banking, payments, enterprise, and consumer services [1]. The heightened risk has made data center assets military targets and raised concerns about shortages of key materials needed for AI infrastructure [1].
Despite the current pause, Pure DC continues to view the Middle East as a 'long-term opportunity,' with ongoing planning and discussions around future projects [1]. Wojtaszek noted that while the macro political environment has slowed sector investment, digital demand in the region remains unchanged, driven by national visions for digital government, enterprise modernization, and workforce transformation [1].
The safety of onsite data center workers has become a growing concern, with Pure DC offering additional benefits and not mandating staff presence in facilities, allowing employees to make decisions based on their personal circumstances [1].
CONCLUSION
Pure DC's decision to halt Middle East data center investments highlights the significant impact of the Iran war on regional digital infrastructure development. While immediate capital deployment is on hold due to safety and supply chain concerns, the company maintains a long-term commitment to the region, citing sustained digital demand and ongoing strategic discussions.