We told readers one month ago that, while trillions of dollars are being allocated to the global data center buildout, virtually every Wall Street analyst remains fixated on financing, chip stacks, power, land, water, and other obvious mainstream inputs. However, we identified one overlooked emerging threat they missed: the risk of kamikaze drone attacks.

By Sunday morning, that risk was realized, as our note pointed out that Amazon's cloud unit, AWS, experienced degraded service in the United Arab Emirates due to a "localized power issue."

Now, a Reuters report provides more color on what exactly happened after an AWS data center in the UAE had to shut down operations, in what appears to be the first known instance of a commercial data center being physically targeted in a conflict.

UAE Data Center Map

The first commercial data center to be damaged on the modern battlefield is certainly not going to be the last, as the Ukraine war has created a period of rapid weapon development over the last four years, as well as in other conflict areas around the world, with the proliferation of FPVs and cheap drones with warheads and AI kill chains.

This threat was outlined in our note titled "Explosion In AI Data Center Buildouts Will Demand Next-Gen Counter-Drone Security," as we recognized that the rapid development in this war technology has effectively accelerated war tech from the 2030s to today (read here). There were absolutely no Wall Street analysts we read on a daily basis discussing this emerging drone threat to data centers as the great buildout unfolded. Analysts were too busy talking about power and AI chips.

But guess who was talking about the data center threat about a year ago? Well... former Google CEO Eric Schmidt (read here). Schmidt was in Ukraine in January (read here).