Amazon Suffers $150 Million Loss Due to Data Center Strikes Linked to Iran
Amazon Web Services incurred an estimated $150 million loss from drone strikes affecting its data centers in Bahrain and the UAE. The incident not only resulted in service interruptions but also exposed vulnerabilities in insurance coverage regarding geopolitical conflicts, potentially leading to higher costs across the industry.
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Amazon Web Services (AWS) experienced significant financial repercussions totaling approximately $150 million due to drone strikes on its facilities in Bahrain and the UAE. The strikes, attributed to geopolitical tensions, disrupted cloud services for weeks, prompting AWS to issue customer credits and revealing substantial insurance gaps, as war exclusions are standard in many policies.
The operational downtime extended beyond a month, indicating long recovery periods. Increased demand for security measures is expected, with enhancements adding up to 5% in construction costs and physical protections costing between $5 million and $20 million per site. These financial burdens may lead to higher prices for cloud services and broader economic impacts.
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