Key facts
- Iran has threatened to damage undersea data cables in the Persian Gulf and Red Sea amid its conflict with the U.S.
- These cables carry a significant portion of global internet traffic, including data for AI hubs.
- Disruptions could lead to prolonged outages, as repair ships may be unable to access the conflict zones.
- Major tech companies and infrastructure providers are taking precautions, with some pulling out of the region.
- The Strait of Hormuz and Red Sea are now effectively closed to commercial traffic due to military actions.
Iran's conflict with the U.S. has brought to light the significant vulnerability of undersea data cables in the Persian Gulf and Red Sea, critical infrastructure for the global digital economy. These cables carry a substantial portion of international data traffic, including financial transactions, cloud services, and AI workloads. Threats to sever these cables could lead to prolonged internet outages, impacting connectivity across continents.
The Strait of Hormuz and the Red Sea, both vital chokepoints for global shipping and data traffic, have become active conflict zones. Iran's Islamic Revolutionary Guard Corps declared Hormuz shut on March 3, and Houthi militants have resumed attacks in the Red Sea. This dual closure of critical passages prevents specialized repair ships from safely accessing damaged cables.
Reports indicate that Iran has hinted at damaging or monetizing these data conduits. While direct confirmation from Iranian officials is lacking, social media accounts and analysts suggest the threat is real and the potential damage is enormous. Some reports suggest these cables carry up to 30% of regional internet traffic and 17% of global traffic. A previous incident in February 2024 saw three Red Sea cables cut by a cargo ship's anchor, disrupting 25% of traffic between Asia, Europe, and the Middle East, with repairs taking five months due to access issues.
Major technology companies and infrastructure providers are responding to the heightened risk. Meta's contractor has reportedly pulled out of the Persian Gulf, and Alcatel Submarine Networks has issued force majeure notices to customers. AWS has warned customers to consider migrating workloads out of the Middle East due to the unpredictable operating environment. The crisis highlights a gap in security frameworks, which have historically prioritized preventing chip access to China over protecting physical infrastructure from missile threats.