The ongoing Iran war has introduced significant uncertainty into the supply chains for key materials used in chipmaking, such as helium and bromine, which are essential for the semiconductor sector and the broader artificial intelligence (AI) infrastructure buildout in the Middle East. Experts warn that a prolonged conflict could disrupt exports of these elements, with Qatar producing over a third of the world's helium and Israel and Jordan accounting for around two-thirds of global bromine production. An extended shutdown of the Strait of Hormuz could remove more than 25% of the world's helium supply from the market, according to Phil Kornbluth, president of Kornbluth Helium Consulting. While the current impact on supply chains appears limited, Ray Wang of SemiAnalysis cautioned that a prolonged conflict could potentially disrupt chipmakers' manufacturing operations [1].
The war has also led to attacks on data centers in neighboring countries, causing outages in banking, payments, enterprise, and consumer services during the initial week of the conflict. This has raised concerns about the security and future of digital infrastructure projects in the region. Major tech companies, including Nvidia, Oracle, Microsoft, and OpenAI, have announced AI buildout projects in Middle Eastern countries neighboring Iran. Patrick J. Murphy of Hilco Global suggested that continued geopolitical risk in the Gulf could prompt companies to accelerate data center projects in regions like Northern Europe [1].
Meanwhile, in the U.S., hyperscalers such as Google, Anthropic, and Amazon are facing backlash over rising electricity prices attributed to their data centers. Since 2020, residential electricity prices have increased by more than 36%, from 12.76 cents per kilowatt-hour to 17.44 cents per kilowatt-hour in February 2026, with forecasts suggesting prices could reach 19.01 cents per kilowatt-hour by September 2027, according to the U.S. Energy Information Administration (EIA). The EIA noted that retail electricity prices have outpaced inflation since 2022 and are expected to continue rising through 2026 [2].
A report from SemiAnalysis argued that market design and policy decisions, particularly the Base Residual Auction mechanism in the PJM Interconnection area, play a greater role in driving up energy prices than AI infrastructure growth alone. This mechanism requires consumers to pay for anticipated electricity costs two years in advance to ensure power availability during peak demand periods. U.S. President Donald Trump recently commented that data centers "need some PR help" to address industry concerns [2].
CONCLUSION
The Iran war is creating uncertainty for AI infrastructure and semiconductor supply chains in the Middle East, with potential disruptions to key materials and heightened security risks for data centers. In the U.S., hyperscalers face scrutiny over rising electricity prices, though analysts point to market mechanisms as a primary driver. The combined geopolitical and economic pressures are likely to influence future investment decisions and the global expansion of AI infrastructure.