The Gulf’s AI ambitions depend on something surprisingly fragile: a handful of undersea cables running through some of the world’s most volatile waterways. Countries like Saudi Arabia and the UAE have spent billions building AI infrastructure, attracting hyperscalers and positioning themselves as future exporters of compute capacity. But as the region shifts from oil wealth to AI-driven economies, the infrastructure carrying that data is increasingly becoming a strategic vulnerability.

Undersea cables have long powered the global internet. Now, they are becoming geopolitical assets. Following the escalation between the US, Israel, and Iran earlier this year, experts warned that regional conflict could threaten critical cable infrastructure in the Gulf. In May, media reports claimed Iran was considering taking control of all seven undersea cables running through the Strait of Hormuz.

Undersea cables carry an estimated 95 percent of all international data traffic. For the Gulf, the problem is concentration: Much of the region’s connectivity to Europe and the US still depends on just a few routes through the Red Sea and the Strait of Hormuz. The Middle East sits at the intersection of Europe, Asia, and Africa, making the region one of the world’s most strategically important transit zones for global internet traffic.

Today, a damaged cable could do far more than slow internet speeds. It could undermine the Gulf’s entire emerging AI business model. For economies in the Middle East, which are gearing up to become large-scale exporters of compute capacity, the importance of and reliance on these cables is growing, not least because the hyperscale companies setting up shop in the region demand higher-than-ever resilience.

AI infrastructure relies on massive and continuous flows of data between hyperscale data centers, cloud providers, and enterprise customers. Even short disruptions can create significant operational and financial consequences, making resilient fiber infrastructure a commercial necessity rather than a luxury. Hyperscalers and regional carriers are pushing diversification because their requirements have moved beyond bandwidth. They now need multiple independent paths, predictable latency, and survivability during geopolitical stress.