Gulf nations are considering reassessing their international investment strategies and future commitments following recent U.S.-Israeli military action against Iran, according to the Financial Times. The potential shift comes as governments across the region look to manage increased financial strains resulting from the escalating conflict.
A senior Gulf official indicated that ongoing hostilities may lead to a review of a wide range of financial activities, including previously pledged investments in foreign countries or businesses, sponsorship agreements in sports, commercial contracts, and even potential asset sales. This reexamination is especially likely if the conflict continues at its current intensity and associated costs rise.
In addition to these pressures, Iranian drone attacks recently damaged Amazon Web Services’ data centers in the region. AWS confirmed that two of its facilities in the UAE were directly impacted, while a third site in Bahrain sustained damage after a drone struck nearby. These incidents underscore not only the expansion of the data center sector in the Middle East but also its exposure to geopolitical risks.
With regional uncertainty on the rise and risks spreading into Europe and the U.S. West Coast, some observers pointed to Asian countries as potentially more stable destinations for shifting investments.
Thailand has rapidly ascended as a premier destination for foreign investment in Asia’s digital infrastructure, successfully positioning itself as the “next destination” for global hyperscalers. This surge is driven by a combination of strategic geography, robust energy security, and aggressive government incentives. While regional neighbors like Singapore and Malaysia face land and power constraints, Thailand offers abundant space and a reliable power grid along with support measures from the Board of Investment (BOI).
Major tech giants have responded with multi-billion dollar commitments; as of early 2026, the country has secured approximately $33 billion in investment applications, with Amazon Web Services (AWS) pledging $5 billion, Google $1 billion, and Microsoft establishing its first regional cloud region in the country.
In the long term, increased foreign investment in digital infrastructure could benefit Thailand’s industrial estate, power generation, and EPC sectors. Data centers require large land areas and reliable infrastructure, which would drive demand for industrial estates through higher land sales and build-to-suit facilities. At the same time, hyperscale data centers consume significant electricity, creating structural demand growth for power plants capable of supplying stable, long-term power. Large infrastructure development associated with these projects would also support EPC companies through new construction and energy-related contracts
Last week, Morgan Stanley recommended Advanced Info Service Public Company Limited (SET: ADVANC or AIS), stating that beyond its strong performance in traditional telecom, AIS is accelerating its participation in Thailand’s surging AI data center market. Morgan Stanley notes an upward revision of capacity forecasts: Thailand’s data center sector, initially pegged at 1GW by 2035, is now expected to reach closer to 3GW due to heightened interest following constraints in Malaysia. AIS, through its joint venture with Singtel and GULF, is constructing three new data centers totaling about 164MW and plans to deliver Thailand’s sovereign cloud in partnership with Oracle.
