Amazon loses $150M after drones hit its data centers — and insurance won’t cover their losses. What it means for you

Amazon said to have absorbed roughly $150 million in customer credits after drone strikes tied to Iran hit AWS data centers in Bahrain and the UAE, causing weeks-long service disruptions. The incident exposed a coverage gap—standard “war” exclusions left damage uninsured—raising the prospect of larger self-insured losses for cloud providers and higher costs for customers. Analysts warn higher security spending, duplicated “sovereign cloud” builds and rising energy bills tied to AI will raise operating costs, likely feeding into cloud pricing and broader tech-sector margins. The story signals increased geopolitical risk for data-center operators (including Microsoft and Oracle) and may pressure valuations and margins for cloud-dependent firms while accelerating capex and insurance-market shifts.