The relocation of the United Arab Emirates' infrastructure underground is taking shape in response to increasing security threats from Iranian drone attacks. This move aims to enhance the security and resilience of infrastructure against aerial and missile attacks, particularly in the Gulf region.
Development of Underground Projects
Boring Company, founded by Elon Musk, has recently raised $3 billion in a Series D funding round. This investment, led by the UAE and related investment entities, has created a valuation of $23 billion for the company. The goal of this investment is to construct over 150 kilometers of underground tunnels for autonomous vehicles in the UAE. Boring Company has also signed a contract with the Dubai Roads and Transport Authority for the "Dubai Loop" project.
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Change in AI Infrastructure Design
The main artificial intelligence infrastructure in the UAE is also shifting from a centralized focus to a distributed approach. The design of a 5-gigawatt AI campus that was to be built in a single location in Abu Dhabi is currently under review. The aim is to distribute data centers across several emirates instead of concentrating them in one location. This change is due to security threats from Iranian attacks on data centers, particularly in March, which resulted in damage to two Amazon Web Services data centers in the UAE and one center in Bahrain.
In response to these threats, the UAE has deployed air defense systems at data centers and relocated some facilities underground. Additionally, assessments are underway for constructing sensitive facilities such as military information in mountainous areas. Estimates suggest that strengthening barriers and protecting servers in data centers could increase construction costs by 5 to 7 percent.
American investors are rapidly examining the Middle East infrastructure crisis as an investment opportunity. Larry Fink, CEO of BlackRock, noted at the Milken Conference in May that there are significant investment opportunities in artificial intelligence in the Middle East and emphasized that all infrastructure should be assessed with the assumption of attacks, as a $3,000 drone can carry out terrorist operations in the Middle East and the United States.
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