My pessimistic assumption is that Amazon said "yes" to handouts from regional government efforts to be relevant in tech, and that those data centers dont really matter to anyone but local politicians and monarchs who believe they have a seat at the table.
They have phones, computers, digital services just like the US and Europe. Makes sense they want a data center in the region, close to them just like the US and Europe have data enters close to their users.
I'm a bit skeptical on how "futuristic" the cities are. There's a lot of money, sure, but from I can tell the projects are pharaonic in a lot of ways, including being out of touch with the practicality of such projects.
There's definitely a lot of issues that need to be addressed at a cultural and social-economical level in places like Dubai exploiting migrant workers like slaves, the UAE, etc... but America has plenty of issues back home at a state by state case. Poverty, infrastructure falling apart, lack of education, lack of affordable health care, lack of job opportunity, high criminality, drug epidemics, etc... Some states feel like entirely different countries when compared to something like New Hampshire.
Even places like NYC and California which are economic hubs have this wide disparity of class, with entire communities of homeless populating the streets at crazy numbers that would make other nations blush (Cali has well over 100k).
I do not live in a binary world. I accept things in between.
Being part of group should be voluntary, not forced
What I definitely do not want is my life to be dictated by a few imbeciles at the top who are bought by large corps to pretend to be "by the people for the people".
Some people think it sufficient to pay no attention and let things slide indefinitely because "ultimately we can just rise up and shoot the government".
Such people have clogged toilets.
All that bicycles really need are a (much narrower) right of way and some cheap pavement. Maintenance can be done all at home, even in a small apartment. The apparent independence available to motor vehicle drivers is an illusion afforded by massive private and public investment.
A Just Eat rider in Amsterdam can quit tomorrow and sue their employer. Those aren't the same thing. You can criticize Europe's treatment of immigrant workers without pretending the difference is just honesty.
What world-class city doesn't?
And if you think there aren't hookers in Dubai, then I don't know what to tell you.
This reminds me of a quote from "Stranger Than Fiction":
> Harold: "I don't want to eat nothing but pancakes, I want to live! I mean, who in their right mind in a choice between pancakes and living chooses pancakes?"
> Dr. Hilbert: "Harold, if you pause to think, you'd realize that that answer is inextricably contingent upon the type of life being led... and, of course, the quality of the pancakes"
I am surprised looking at this seemingly racist comment. Just because someone doesn't follow your tradition/culture doesn't mean they are living in the 12th century. There are people living everywhere in the world.
Dubai is in fact very developed, and there are not just camels living there - there are people, and many companies - albeit not so much primarily in the tech industry.
They do not have the tallest building in the world there worth $1.5 billion for no reason. They have tech needs like any other country and I hope that clears your confusion.
https://www.walkfree.org/global-slavery-index/country-studie...
In those countries women are owned properties of their husbands, homosexuality is punishable by death and slavery is common.
But yeah, sure, they have a tall skyscraper so they are ok I guess.
They certainly may appear backwards from our western culture but that is only superficial.
They are in a very unfortunate position.
Or are we not allowed to compare these things because of who the perpetrators are?
And, in the case of colonial crimes, don’t tell me to “let bygones be bygones” until apologies have been made and reparations disbursed.
In the meantime, the West is complicit and can instead direct their holier than thou attitude and patronizing lectures inwards.
Edit: Just as a side note, I saw western people bend over backwards to please people when I went to Japan. It becomes a self-fulfilling prophecy some treatment they get will be positive when you behave in such a way (like a guy bowing 5 times just for getting his photo taken, stuff that would never happen to anyone else) almost embarrassing really.
I did some work with hosts on GCP in the region and you get fun things like hosts in Israel has bad routes to customers in nearby countries and vice versa, though. I don't know if AWS has access to better routing. Definitely a case where physical distance doesn't really correspond with network distance.
Technically, I can see challenges in power and cooling, but those can be overcome. The real question is- Are there enough customers in the region to support local data centers? I think that’s clearly yes.
1) Internal risks and controls within the datacenter (the company involved and their operating history, fires, flood, etc,) -- for a sufficiently "good" datacenter, you can assume it gets maxed out in quality, or at least to the point where it's no longer efficient to spend more. Most of these risks also cause service disruptions, so if you're building for high availability anyway, the rest of this stuff is usually handled as part of that. Essentially, if you're too cheap to build a good enough datacenter to max this out, you're not getting insurance anyway in most cases, so it's not a variable factor so bunch as binary or maybe a few broad risk bands (ISO tier for datacenters).
2) External risks. This is mostly natural catastrophe ("nat cat" or "cat risk"); usually there's one dominant driver of that ("severe convective storms" in Texas; floods and hurricanes in places like Florida; earthquakes in California). In some places it's multiple risks (Japan has both earthquake/tsunami and typhoon). This drives the majority of insurance premium.
War risk, geopolitical, political risk, terrorism, SRCC ("strikes, riots, and civil commotion") are in a third category -- often essentially not a factor (e.g. for a $200mm facility in rural Texas), but often handled through special programs at a national level or specialty insurance. A lot of normal policies exclude or let the client buy-back that part of the risk.
As my personal interests in war zones, drones, etc. and professional interests in crypto, AI, and datacenters seem to have converged, looking forward to seeing "quality of air defense artillery/integrated air defense system" as well as "comprehensive quick reaction force capable of dealing with national-level threats" as elements of insurance underwriting for $50B AI datacenters/"AI factories" in the future. I assume in most cases this kind of stuff will be handled by national, military, defense, or civil defense parts of the government, but could easily be contracted as well. I don't think Oracle Cloud is likely to stand up their own private army though.
I also agree with the sibling comment that suggests even if there were outsourced options available, hyperscalers might do better to self-insure.
But regardless whether the company eats it, or pays it through insurance premiums, I'm still curious how this type of risk is planned for (to whatever degree it is) and accounted. I assume it must have been contemplated in a deliberate manner, somewhere on a scale of "We knew this could happen, considered x, y and z, decided the venture was justified, and here's how we planned for such a contingency" to "That was dumb siting and someone will be fired". Obviously anywhere you put a building entails some level of local risk.
As years as a volunteer firefighter we do a lot of risk management at the tactical level and have to think through assessment and potential consequences. There are lots of guidelines we learn to help produce sound decisions. But at the end of the day to apply them you may need to make a judgement call, and you need to be prepared for things to go wrong. In a way I guess I'm asking about the economic and operational equivalent at the scale of hundred-million dollar data centers.
Ps. Like the original commenter said, I'm in no way meaning to be insensitive to the larger human and regional consequences.
As long as sun and wind aren’t the main energy sources there, it might be economical but I wouldn’t exactly call it reasonable.
Edge compute. Data (coughlaugh) residency. Obsession with low latency on our 42Mb web pages.
It was business for those contries. Just like finance, travel and wgat have you.
Are you from another planet? They DO have a set at the table because gulf Sovereign Funds are one of the largest and most reliable LP pools available for VC funds for quite some time.
The current AI buildout is heavily dependent on Gulf money.
Oil is not forever and Sovereign Wealth Funds usually have goals that are not simply acruing direct investment returns, it makes sense that the folks deploying 100 billions tranches will have some say on where to put all those H100 their money will buy.
Nobody sane would predict Israel and the US would start this war.
Israel predicted and started the war unless you consider they're insane [1].
[1] Iran is a distraction [video]:
Like as a strategy its kind of weird. Iran plans to force Israel to stop by wrecking the economies of a bunch of countries that are basically frenemies of Israel? I suppose its meant to pressure USA, it just seems like a terrible strategy.
It has had some effect; the emirates are desperate to find a way out of this conflict, and various figures have publicly said "the system of alliances [with the US] has worked but needs to be modernized" - i.e. we can't allow Americans to do what they want anymore.
Everything else is maintained and operated in agreement with local authorities - which is why the US, at the moment, cannot use Spanish bases and Diego Garcia to wage war on Iran. Even Saudi bases have been blocked in the past (notably to invade Iraq).
Without long-term bases, it becomes extremely difficult to project power with continuity. Can you still do the occasional special op, like killing Osama? Sure, but you can't do things like ensuring free navigation (and hence the flow of resources and goods) and signal intelligence gets so much harder.
Of course it isn't. In reality, being able to resist requires power. Power that's gained more or less independently such as Iran's. Gulf states should be in a position of power to able to resist US presence. The power they have right now is mostly gained through the help of USA and its allies. It's not the same as Iran. Not even close.
I gave examples of it actually happening. If sandal-wearing Houthis can resist, then well-funded oil states can as well. The Taliban beat the US. In fact, very few people have failed at ejecting the US from the country when they tried if you think back. The US tends to lose a lot.
Ironically Yemen (Houthis) are fighting not only with US but against other gulf sates like Saudi Arabia as well. It's not really an example that demonstrates unity in gulf.
> The Taliban beat the US.
Taliban, brought to you by US of A to combat Soviet Union's influence! Well, it seems they are done beating US and are now busy beating Afghan women.
> The US tends to lose a lot.
Do they really? After the war is over and US is beat, how does the life of an average American compare to someone's from your list. It is the people of Middle East who pay the biggest price. That's the real loss.
*edit: typo
Vietnam. Afghanistan. Iraq (it's an Iran proxy now). Korea was a stalemate.
Pretty much every time the US goes alone against a medium-sized country, it doesn't end in victory.
To keep a military base in a country you either need to be allowed to do so, or you have to do so by force, by occupying the country.
Occupation is doable, but very costly. The US did it recently in Afghanistan (which is barely a functioning country itself).
So yeah, it keeping military bases abroad via occupation is doable for some time, but not very feasible. It is more realistic to have a system of allied countries.
It's sort of a meme how people in the US imagine all middle eastern countries to be a bunch of mud huts in the world's largest gravel quarry.
There are all sorts of levers US, China, Russia can pull to in order to put pressure on a country for such things. There's occupation, mutual benefits, long standing agreements post wars, soft power, sanctions, etc. Geopolitics is complicated.
Bahrain to Iran is ~140 miles. Dubai is ~100 miles. Israel is closer to ~600.
"Videos verified by Storyful, which is owned by News Corp, the parent company of The Wall Street Journal, indicate that at least some of the launches came from Bahrain, the tiny kingdom just 125 miles across the Gulf from Iran."
The air bases are still being used as launch pads for drone strikes and chopper missions.
https://en.wikipedia.org/wiki/Naval_Support_Activity_Bahrain
Same for Iraq, Kuwait, Saudi Arabia, the UAE, etc.; all host US bases. https://www.reuters.com/world/middle-east/us-military-facili...
Same as sanctions. There are many places where they can not tell governments what to do, so they suffocate general population
In more practical terms, wrecking shit up in places like Dubai that made their name off air travel and attracting "expat" douchebags, is a very effective way to get them to pressure the US to stop the war. So is blowing up oil infra and stopping transit in Hormuz for allied nations.
In the end game, they are going to need some leverage over Israel, that is stuck there with them. If they destroy everything now, they will not have anything to threaten them with.
Also the Emirates are in range of short range cheapo drones and Iran build lot of these, while Israel is farther away.
... For now.
> Like as a strategy its kind of weird. Iran plans to force Israel to stop by wrecking the economies of a bunch of countries that are basically frenemies of Israel? I suppose its meant to pressure USA, it just seems like a terrible strategy.
The gulf countries are enemies of Iran. In fact, they are a lot cozier to Israel.
Property insurance generally has war exclusions, insurance co will deny claims. Unless there is some affordable magic 100% war damage coverage policy sold in the middle east, which is doubtful, no insurer would be able to successfully underwrite anything like that.
The company eats the losses and the recovery efforts it wants to persue.
https://www.dfc.gov/what-we-offer/our-products/political-ris...