Amazon Cloud Facilities in UAE and Bahrain Hit by Drone Strikes; Abu Dhabi Warehouse Temporarily Shut Amid Regional Tensions

Amazon's Cloud Unit AWS Hit by Drone Strikes in the Middle East

AWS, Amazon's cloud unit, has been impacted by drone strikes at its facilities in the United Arab Emirates (UAE) and Bahrain amid the ongoing Middle East conflict.

The incidents follow power and connectivity issues at AWS' cloud-computing facilities in the UAE after unidentified "objects" struck its data centre. This is not the only impact Amazon is facing due to the war in Iran and its effects on the Gulf countries.

Amazon has closed its fulfilment centre in Abu Dhabi and suspended deliveries across the region in response to escalating instability in the Middle East. This has resulted in delays for customers in the region, with Amazon's internal memo reportedly stating that customers are experiencing delays in deliveries and returns.

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The company has also halted business travel to Israel and Lebanon, while many Amazon employees across the region have transitioned to a work-from-home model. Employees in Saudi Arabia and Jordan have been instructed to remain indoors.

Amazon's logistics footprint in the Middle East has been impacted, with the UAE serving as the backbone of its network, which also includes marketplaces in Saudi Arabia, Egypt, and Turkey. The company expanded its logistics footprint in the region following its $600 million acquisition of Souq.com in 2017.

The closure of the Amazon facility in Abu Dhabi is also affecting third-party sellers, with nearly 300,000 sellers in the Middle East facing shipment delays and potential order cancellations. Amazon has placed additional operational support on standby mode to manage the disruption and is monitoring the situation.

This disruption serves as a reminder of how quickly geopolitical tensions can cause strain on global supply chains.

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