US tech companies are stepping up lobbying of government officials at home and abroad amid the Iran war, as they seek to protect their interests and prepare contingency plans, industry insiders told CNBC.
The conflict in the Middle East has disrupted the global trade sector, sending oil prices skyrocketing and supply chains heavily disrupted. In the tech industry, assets in the region have become military targets and analysts predict shortages of key materials needed to build AI infrastructure.
“US tech companies are actively engaging both US diplomats and regional counterparts in the Middle East, as well as White House and Pentagon officials,” Sean Evins, partner at strategic communications consultancy Kekst CNC, told CNBC.
He pointed to clients in Big Tech as well as the data center and semiconductor sectors as increasing lobbying efforts, but declined to share specific names because the information is confidential.
The risk to those customers is now physical as well as commercial, he said. “Critical submarine cables, public sector clouds, data centers and enterprise systems are physically and financially embedded in the Gulf economies. Any instability immediately begins to jeopardize contracts and ultimately revenues.”
A White House spokesperson told CNBC that President Donald Trump “has always been clear about the temporary disruptions resulting from Operation Epic Fury.”
He said the administration is “working closely with industry leaders not only to minimize these disruptions, but also to continue laying the groundwork for America’s long-term economic recovery.”
Risks to infrastructure and markets
Tech companies have become a direct target as the Iran war escalates into a regional conflict.
Apps and digital services in UAE Outages were reported following drone attacks on Amazon Web Services data centers in the country in March. In early April, Iran’s Revolutionary Guard threatened attacks on several American technology companies operating in the Middle East, including NVIDIA, Apple, Microsoft And Google.
The second-order effect is also being felt. Exports of helium, a key material in chip manufacturing and other manufacturing processes, have already declined significantly due to the fighting. Experts have also warned that a prolonged conflict would create uncertainty over future data center and AI infrastructure projects in the region.
Mehdi Paryavi, CEO of the International Data Center Authority (IDCA), a US-based think tank, told CNBC that he is aware that tech companies are lobbying US officials to end the conflict.
“Tech companies are extremely concerned about this conflict because peace is a key requirement for building data centers, cloud services and AI factories,” he said.
“At a base level, what these companies want is for war to stop being a risk to infrastructure, markets and systems,” Ivins said.
“They also want their people safe,” he said. “They are looking for a known operating environment. Tensions may exist, but a ceasefire, backchannel negotiations or even a stable conflict is preferable to ongoing unpredictability.”
Evins told CNBC that he sees less concern on the part of tech companies about legislative consequences, what would be considered traditional lobbying, and more focus on risk exposure as a company.
“They are pushing for clear deterrents against attacks on commercial properties and a firm commitment from the US and other governments to protect those properties,” he said. “There has been a real effort to ensure that the conflict does not spread to critical infrastructure.”
