Iran threatens Gulf digital facilities if war resumes, sets 7 conditions for talks
Key Facts
Mohsen Rezaei threatened to include cables, data centers and artificial intelligence facilities among potential targets if war resumes, according to a written interview published by Drop Site. The warning covers the digital infrastructure underpinning cloud computing and artificial intelligence projects in the Gulf, alongside energy facilities. Rezaei linked putting energy facilities in neighboring countries at risk to their use in offsetting pressure from the Strait of Hormuz crisis and sustaining the blockade of Iran. He used the phrase "sustaining the blockade of Iran" in the interview to specify the condition attached to the warning. In a response to the outlet, Anna Kelly, the White House's principal deputy press secretary, denied that the United States would attack Iran before the midterm elections.
The remarks coincided with an Iranian television account, cited by the Associated Press in its report dated 22 October 2026, that 7 oil tankers had been attacked or struck naval mines in the Strait of Hormuz overnight. Revolutionary Guards spokesman Hossein Mohebbi, meanwhile, warned in an interview with Mehr news agency of the consequences of any new U.S. action. He said "any new U.S. action, even if limited, will expose the world to a serious energy crisis." Rezaei said in his interview with Drop Site that Iran was ready for the next phase of escalation, adding: "We have not used all our capabilities." According to the Iranian news agency, he said Tehran had invested in distributed production, underground facilities, diversified launch systems and damage repair to strengthen the continuity of its military capabilities.
Cloud computing facilities in the Gulf have previously suffered strikes and disruptions during the military escalation. In a report published in March 2026, Reuters cited Amazon as saying that 2 of its facilities in the United Arab Emirates had taken direct hits. The company said at the time: "2 of our facilities in the UAE took direct hits." In Bahrain, Reuters cited the company as reporting renewed service disruptions due to drone activity. Following that disruption, Amazon urged customers running computing workloads in the affected regions to continue moving them to other locations.
Gulf digital infrastructure projects include the Stargate UAE campus in Abu Dhabi, with a planned capacity of 1 gigawatt, according to an Abu Dhabi Media Office announcement in May 2025. The announcement set the first cluster, with a capacity of 200 megawatts, to begin operating during 2026. The office described the cluster's start date as expected within the project's announced timetable. Cisco announced its participation in the initiative to provide networking, security and system monitoring solutions. The company said these solutions aimed to accelerate the deployment of advanced AI computing clusters.
The region's technology expansion plans include investments announced by Microsoft in cloud and artificial intelligence infrastructure. In September 2026, the company announced a plan to spend more than $10 billion in the Middle East through 2030. The plan includes capital and operating expenditure across the region during that period. In an earlier announcement, Microsoft put its total investment in the UAE at $15.2 billion. The announced UAE investment period runs from 2023 to 2029, according to the company.
On the diplomatic front, Rezaei said, according to the Iranian news agency, that Tehran had submitted 7 new conditions through mediators, in remarks published during October 2026. He linked reopening the Strait of Hormuz and returning to negotiations to meeting those conditions. He also said Iran was holding talks with Gulf Cooperation Council countries on regional security arrangements to prevent renewed confrontation in the Gulf with outside powers. Explaining the Iranian initiative during October 2026, Foreign Minister Abbas Araghchi said it called for the strait to reopen fully on day 6 of the period it covers. Araghchi confirmed, according to the agency, that diplomatic contacts between Iran and the United States were continuing.