Amazon (AMZN) says it is struggling to keep its cloud computing services online in the Middle East amid Iranian drone strikes.
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New trading tool for AMZN bullsIn a media interview, Matt Garman, the head of Amazon Web Services (AWS), said that the Iran war poses ongoing challenges for the company’s cloud services throughout the Middle East region. “It’s a really difficult situation, and we’re working incredibly hard,” he said.
Garman added in the interview that Amazon has teams working around the clock to “make sure that we can keep our infrastructure up for our customers in that region.” Amazon said in early March that drone strikes had damaged its data centers in Bahrain and the United Arab Emirates (UAE).
Worsening Situation for Amazon
Despite best efforts, dozens of Amazon Web Services in Bahrain and the UAE continue to be unavailable, according to the company. Last week, Iran’s Revolutionary Guard announced it had targeted Amazon data center infrastructure in Bahrain in an effort to hurt U.S. interests.
Data centers, particularly those housing microchips and processors that can handle generative artificial intelligence (AI) models, consume large amounts of energy, which has become more expensive since the Iran war began at the end of February.
Amazon Web Services is the world’s top supplier of cloud infrastructure that companies use to run websites and online applications.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 43 Wall Street analysts. That rating is based on 40 Buy and three Hold recommendations issued in the last three months. The average AMZN price target of $279.88 implies 32.95% upside from current levels.
