Tech sector faces market sell-off and Amazon data center damage in Bahrain

Global technology markets face dual pressures from geopolitical conflicts and market volatility. Satellite images revealed damage to two Amazon data centers in Bahrain following Iranian missile strikes last week, which Iran’s Revolutionary Guard linked to alleged Amazon support for U.S. military operations.

Concurrently, Wall Street experienced sharp declines across major tech equities, driven by heavy losses in semiconductor manufacturers like Micron and leading artificial intelligence firms. Fitch Ratings warned that a sudden downturn in AI-related valuations poses a broader global credit risk. Analysts noted an investor shift away from high-valued hardware toward defensive stocks and software equities.

In corporate developments, Swedish fintech provider Klarna confirmed a new strategic collaboration with Apple.

Sources: Dagens Industri