The World’s Internet Cables are Trapped in Iran’s Strait of Hormuz Crisis

The same geopolitical fault lines that once threatened oil markets are threatening cloud computing, artificial intelligence and global connectivity. The Gulf spent years selling itself as the next frontier for AI, attracting billions from Amazon, Microsoft, Google and OpenAI to build giant data centers in the desert. Yet the digital empire rests on surprisingly vulnerable fiber-optic cables running through the Strait of Hormuz and the Red Sea, two maritime chokepoints suddenly caught in the same conflict. Washington spent years restricting chips from reaching China, but the war with Iran is exposing a more uncomfortable reality: AI infrastructure is only as secure as the cables lying quietly on the seabed.

The simultaneous closure of the Strait of Hormuz and the Red Sea has exposed a major vulnerability in the Gulf’s ambitions to become a global artificial intelligence hub, threatening billions of dollars in technology infrastructure investments by U.S. firms including Amazon, Microsoft and Google.

The conflict between the United States and Iran has effectively shut the only two maritime routes carrying much of the region’s commercial and digital traffic, placing undersea internet cables and hyperscale data centers in the Gulf at unprecedented risk.

Seventeen submarine cables pass through the Red Sea alone, carrying most internet traffic linking Europe, Asia and Africa. Additional cables running through the Strait of Hormuz connect Gulf states including Qatar, Bahrain, Kuwait and Iraq.

“For the first time, both the Strait of Hormuz and the Red Sea are effectively closed to commercial traffic,” according to a report by Rest of World.

Iran’s Islamic Revolutionary Guard Corps declared the Strait of Hormuz closed on March 3, warning vessels attempting passage risked attack. At least five tankers have reportedly been damaged, while about 150 ships remain stranded near the strait.

At the same time, Yemen’s Houthi militants said they would resume attacks on Red Sea shipping in support of Iran, ending a ceasefire that had largely held since late 2025.

“Closing both choke points simultaneously would be a globally disruptive event,” Doug Madory, director of internet analysis at network intelligence firm Kentik, said. “I’m not aware of that ever happening.”

Analysts say the crisis has highlighted how Gulf technology infrastructure was built with a focus on semiconductor access and geopolitical alignment with Washington, rather than physical protection from missile attacks or maritime disruption.

“A theoretical scenario has become a concrete precedent,” Kristian Alexander, senior fellow at the Rabdan Security and Defence Institute in Abu Dhabi, said. “This does not necessarily introduce a new risk so much as it validates what was already in every serious threat model.”

The concerns intensified after drones struck three data centers operated by Amazon Web Services over the weekend, including two facilities in the United Arab Emirates and one in Bahrain. AWS reportedly advised customers to consider moving workloads outside the Middle East because the regional operating environment “remains unpredictable.”

Experts say the cables themselves are unlikely to be deliberately targeted because such attacks could also disrupt Iran’s own connectivity. Instead, the greater risk comes from accidental damage or collateral strikes.

In February 2024, three Red Sea cables were cut after a cargo ship hit by a Houthi missile dragged its anchor across the seabed, disrupting about 25% of traffic between Asia, Europe and the Middle East. One cable reportedly took five months to repair because repair ships could not safely access the area.

The disruption comes as Gulf states accelerate efforts to position themselves as major AI and cloud computing hubs.

During U.S. President Donald Trump’s Gulf tour last year, regional governments and technology companies announced more than $2 trillion in investment commitments tied to artificial intelligence infrastructure.

Among the projects announced was Stargate UAE, a planned 5-gigawatt AI campus in Abu Dhabi backed by OpenAI, Oracle, Nvidia, SoftBank and Abu Dhabi-based AI firm G42. Amazon also pledged $5 billion for an AI hub in Riyadh alongside Saudi Arabia’s Humain initiative.

“The security frameworks underpinning the U.S.-UAE AI partnership appear to have focused on supply chain control and geopolitical alignment, not on physical defense during high-intensity conflict,” Ali Bakir, assistant professor of international affairs at Qatar University, said.

The report said Gulf states had strengthened missile defenses since the conflict began. The UAE reportedly intercepted 165 ballistic missiles, two cruise missiles and more than 500 drones during one weekend of attacks, while Saudi Arabia and Qatar deployed similar defenses.

Inside Iran, internet traffic has collapsed since February 28, according to data shared by Kentik, suggesting authorities imposed a near-total government shutdown rather than suffering major infrastructure failures.

Despite the turmoil, analysts say the Gulf’s long-term advantages, including access to capital, energy resources and strategic geographic positioning, remain intact.

“The structural advantages have not yet changed, although the story is still being written,” Ryan Bohl, senior analyst for the Middle East and North Africa at RANE Network, said. “If this conflict continues, there will increasingly be a greater likelihood that major impacts will alter the perception of safety and value for the long term.”

The crisis may force Washington to rethink how it protects digital infrastructure in the Gulf, treating undersea cables and AI facilities more like strategic energy assets integrated into military and contingency planning.

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