Gulf data centers in the crosshairs

War is exposing risks in the Gulf's AI infrastructure push, while Singapore's Stryv expands into home appliances with a buyout.

Read from your browser Daily Newsletter Welcome to Tech in Asia's daily newsletter, your essential dose of Asia's tech and startup buzz. Subscribe to this newsletter or send story tips to editors@techinasia.com. Ensure our articles appear in your Google searches: IN FOCUS Data centers in the firing line Singapore's Stryv acquires a water purifier brand in consolidation move A look back into our archives at the Middle Eastern investors backing Asian tech Hello Betamax, Slowly but surely, the second-order effects of the war in the Middle East are spreading across the world. Here in Hanoi, we can see them at the gas stations. With the flow of crude oil from the region disrupted, gas prices are up, and the lines at the pumps are packed as people rush to fill up. Flights are also affected, and I'm wondering how feasible it will be to fly back home to Ireland this summer on the usual route via the Middle East. Today's first featured story looks at another ripple effect from the conflict: the vulnerability of the Gulf's rapidly expanding AI and data center infrastructure. Guest writer Alex Malouf explores the region's data center build-up, which is now exposed to geopolitical risk. As he outlines, the options for reducing that risk aren't great, from pricey underground construction to building in defensive capabilities. That said, this second-order effect could be a boon for other regions like Southeast Asia, which may prove a safer bet for future data center construction. We started this note on the topic of oil. Now it's time to talk about that other essential liquid: water. My colleague Elyssa reports on Singapore-based consumer electronics startup Stryv's acquisition of home appliance brand Sterra, which is best known for its air and water purifiers. The deal is another example of how consumer brands in Asia are consolidating as they look to scale faster. Peter Cowan, engagement editor TOP STORIES 1️⃣ War exposes new risks for the Gulf's AI infrastructure push With vast swaths of land, a central location between Asia and Europe, and abundant energy resources, the Gulf region appeared to be the ideal location for a data center buildout amid the AI boom. Then the war in the region began, with data centers in the Gulf having been hit by drone attacks. Now, investors and hyperscalers may have to reconsider how concentrated their AI infrastructure should be in the region. In the short term, some workloads may even shift to countries like India and Singapore. 2️⃣ SG-based Stryv acquires water purifier brand Sterra The deal gives Stryv access to Sterra's customers, technicians, and supplier network as it expands into home appliances. Sterra alone has its products in around 200,000 homes in Singapore. Stryv says the move is part of a push to build a nine-figure revenue business by 2027. FROM OUR ARCHIVES Mapping Middle Eastern investors fueling Asian tech firms Oil money has spread across the world as Middle Eastern investors look to turn their liquid gold into stakes in successful tech companies. The Asian tech scene is no exception, as this article from 2023 shows. However, if geopolitical turmoil in the region continues, those investment flows may begin to slow, and the startups listed here could feel the impact. The data reveals that most of this capital is flowing into just a handful of Asian markets, so they may stand to lose the most. TRENDING NEWS 1️⃣ Big Tech taps debt markets to finance AI push Bridgewater Associates said the AI spending boom has entered a "more dangerous phase" as the likes of Amazon, Salesforce, Meta, and Oracle have become more reliant on outside capital. 2️⃣ Meta acquires AI-agent platform Moltbook The founders of the Reddit‑like social network for AI agents will join Meta Superintelligence Labs, which is led by Meta's chief AI officer Alexandr Wang. 3️⃣ Singapore's PDG plans up to $5b debt for Asia AI data centers Princeton Digital Group plans to use the capital to build data centers in India, Indonesia, Malaysia, and Japan. 4️⃣ Japan aims for $253b domestic chip sales by 2040 The country currently sells around US$50.6 billion worth of domestic chips annually. 5️⃣ Indian aquaculture startup AquaExchange raises $8m funding AquaExchange says it has digitalized about 25% of the country's active shrimp farming acreage by providing services like IoT-based automation and AI-driven predictive analytics. SAVING LIVES WITH MATH In partnership with Predicting the future is actually possible - to an extent. It's just that it involves large amounts of data instead of a crystal ball. Sri Ambati, CEO and founder of agentic and predictive AI company H2O.ai, says that the signals for many occurrences are trapped in data. His firm's solutions bring these signals to the surface, whether it's to help to prevent scams and fraud in the financial services space, tally the numbers of endangered species - or even predict wildfires. In Singapore, H2O.ai and IMDA are collaborating to make the AI firm's solutions accessible to a wider range of companies by lowering the costs and requirements of deploying agents. Learn more about the many ways IMDA Accreditation is helping firms like H2O.ai contribute to Singapore's tech ecosystem. PRESS PEEKS The following press releases were published as they were received, without any editing from the Tech in Asia team. 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