When Russian troops invaded Ukraine on 24 February 2022, Russia’s datacentre sector was one of the fastest-growing segments of the country’s IT industry, with annual growth rates in the region of 10-12%. However, with the conflict resulting in the imposition of Western sanctions against Russia and an outflow of US-based tech companies from the country, including Apple and Microsoft, optimism about the sector’s potential for further growth soon disappeared. In early March 2025, it was reported that Google had disconnected from traffic exchange points and datacentres in Russia, leading to concerns about how this could negatively affect the speed of access to some Google services for Russian users. Initially, there was hope that domestic technology and datacentre providers might be able to plug the gaps left by the exodus of the US tech giants, but it seems they could not keep up with the hosting demands of Russia’s increasingly digital economy. Oleg Kim, director of the hardware systems department at Russian IT company Axoft, says the departure of foreign cloud providers and equipment manufacturers has led to a serious shortage of compute capacity in Russia. This is because the situation resulted in a sharp, initial increase in demand for domestic datacentres, but Russian providers simply did not have time to expand their capacities on the required scale, continues Kim. According to the estimates of Key Point, one of Russia’s largest datacentre networks, meeting Russia’s demand for datacentres will require facilities with a total capacity of 30,000 racks to be built each year over the next five years. On top of this, it has also become more costly to build datacentres in Russia. Estimates suggest that prior to 2022, the cost of a datacentre rack totalled 100,000 rubles ($1,200), but now exceeds 150,000 rubles. And analysts at Forbes Russia expect these figures will continue to grow, due to rising logistics costs and the impact the war is having on the availability of skilled labour in the construction sector. The impact of these challenges is being keenly felt by users, with several of the country’s large banks experiencing serious problems when finding suitable locations for their datacentres. Sberbank is among the firms affected, with its chairperson, German Gref, speaking out previously about how the bank is in need of a datacentre with at least 200MW of capacity, but would ideally need 300-400MW to address its compute requirements. Stanislav Bliznyuk, chairperson of T-Bank, says trying to build even two 50MW datacentres to meet its needs is proving problematic. “Finding locations where such capacity and adequate tariffs are available is a difficult task,” he said. Read more about datacentre developments North Lincolnshire Council has received a planning permission application for another large-scale datacentre development, in support of its bid to become an AI Growth Zone A proposal to build one of the biggest datacentres in Europe has been submitted to Hertsmere Borough Council, and already has the support of the technology secretary and local councillors. The UK government has unveiled its 50-point AI action plan, which commits to building sovereign artificial intelligence capabilities and accelerating AI datacentre developments – but questions remain about the viability of the plans. Despite this, T-Bank is establishing its own network of data processing centres – the first of which should open in early 2027, he confirmed in November 2024. Kirill Solyev, head of the engineering infrastructure department of the Softline Group of Companies, who specialise in IT, says many large Russian companies are resorting to building their own datacentres – because compute capacity is in such short supply. The situation is, however, complicated by the lack of suitable locations for datacentres in the largest cities of Russia – Moscow and St Petersburg. “For example, to build a datacentre with a capacity of 60MW, finding a suitable site can take up to three years,” says Solyev. “In Moscow, according to preliminary estimates, there are about 50MW of free capacity left, which is equivalent to 2-4 large commercial datacentres. “The capacity deficit only in the southern part of the Moscow region is predicted at 564MW by 2030, and up to 3.15GW by 2042.” As a result, datacentre operators and investors are now looking for suitable locations outside of Moscow and St Petersburg, and seeking to co-locate new datacentres in close proximity to renewable energy sources. And this will be important as demand for datacentre capacity in Russia is expected to increase, as it is in most of the rest of the world, due to the growing use of artificial intelligence (AI) tools and services. The energy-intensive nature of AI workloads will put further pressure on operators that are already struggling to meet the compute capacity demands of their customers. Speaking at the recent Ural Forum on cyber security in finance, Alexander Kraynov, director of AI technology development at Yandex, says solving the energy consumption issue of AI datacentres will not be easy. “The world is running out of electricity, including for AI, while the same situation is observed in Russia,” he said. “In order to ensure a stable energy supply of a newly built large datacentre, we will need up to one year.” According to a recent report of the Russian Vedomosti business paper, as of April 2024, Russian datacentres have used about 2.6GW, which is equivalent to about 1% of the installed capacity of the Unified Energy System of Russia. Accommodating AI workloads will also mean operators will need to purchase additional equipment, including expensive accelerators based on graphic processing units and higher-performing data storage systems. The implementation of these plans and the viability of these purchases is likely to be seriously complicated by the current sanctions regime against Russia. That said, Russia’s prime minister, Mikhail Mishustin, claims this part of the datacentre supply equation is being partially solved by an uptick in the domestic production of datacentre kit. According to the Mishustin, more than half of the server equipment and industrial storage and information processing systems needed for datacentres are already being produced in Russia – and these figures will continue to grow. The government also plans to provide additional financial support to the industry, as – to date – building datacentres in Russia has been prevented by relatively long payback periods, of up to 10 years in some cases, of such projects. One of the possible support measures on offer could include the subsidisation of at least part of the interest rates on loans to datacentre developers and operators. At the same time, though, the government’s actions in other areas have made it harder for operators to build new facilities. For example, in March 2025, the Russian government significantly tightened the existing norms for the establishment of new datacentres in the form of new rules for the design of data processing centres, which came into force after the approval by the Russian Ministry of Construction. According to Nikita Tsaplin, CEO of Russian hosting provider RUVDS, the rules led to additional bureaucracy in the sector (due to the positioning of datacentres as typical construction objects). And, according to his predictions, that situation can extend the construction cycle of a datacentre from around five years to seven years. The government’s intervention here was to prevent the installation of servers in residential areas, such as garages, but it looks set to complicate an already complex situation – prompting questions about whether Russia’s datacentre market will ever reach its full potential.

As Russia continues its relentless assaults on Ukraine despite in defiance of continuing efforts to work towards a peace deal, multiple western security agencies have issued a new advisory warning of a Moscow-backed  campaign of cyber intrusions targeting logistics and technology organisations in the west. The campaign, run through Unit 26165 of the Main Directorate of the General Staff of the Armed Forces of the Russian Federation (GRU), better known as Fancy Bear, includes credential guessing, spear-phishing attacks, exploitation Microsoft Exchange and Roundcube vulnerabilities, and flaws in public-facing infrastructure including VPNs. This pattern of activity likely dates back to the early days of the war in February 2022 – at which point Fancy Bear was more heavily involved in cyber operations for purposes of espionage. However, as Russia failed to achieve its military objectives as quickly as it had wanted, the group expanded its targeting to include entities involved in the delivery of support and aid to Ukraine’s defence. Over the past three years its victims have included organisations involved in air traffic control, airports, defence, IT services, maritime and port systems sectors across various Nato countries. The advanced persistent threat (APT) actor is also understood to be targeting internet-connected cameras at Ukraine’s border crossings and around its military bases. These intrusions mostly took place in Ukraine but have also been observed in neighbouring states including Hungary, Poland, Romania and Slovakia. The GCHQ-run National Cyber Security Centre (NCSC) urged UK organisations to familiarise themselves with Unit 26165’s tactics and take action to safeguard themselves. “This malicious campaign by Russia’s military intelligence service presents a serious risk to targeted organisations, including those involved in the delivery of assistance to Ukraine,” said Paul Chichester, NCSC Director of Operations. “The UK and partners are committed to raising awareness of the tactics being deployed. We strongly encourage organisations to familiarise themselves with the threat and mitigation advice included in the advisory to help defend their networks.” The NCSC’s latest warning comes a couple of weeks after the cyber body’s CEO, Richard Horne, talked of a “direct connection” between Russian cyber attacks and physical threats to the UK at its annual conference. Horne told an audience at the CyberUK event that Russia was focusing on acts of sabotage, often involving criminal proxies. He said these threats, which are thought to have included arson attacks, are now manifesting on the streets of the UK, “putting lives, critical services and national security” at risk. Rafe Pilling, director of threat intelligence at the Sophos (formerly Secureworks) Counter Threat Unit (CTU) – which tracks Fancy Bear as Iron Twilight – said that the group's targeting of spear-phishing and vulnerability exploitation to gain access to target mailboxes had been a staple tactic for some time. “The focus of their operations pivots as the intelligence collection of the Russian military change and since 2022 Ukraine has been a significant focus of their attention. The targeting of Nato  and Ukranian defense and logistics companies involved in the support of the Ukrainian war effort makes a lot of sense in that context,” Pilling told Computer Weekly.   “The targeting of IP cameras for intelligence collection purposes is interesting and is a tactic generally associated with state-sponsored adversaries like Iron Twilight where they anticipate a physical effects aspect to their operations. As an intelligence provider to the Russian military this access would assist in the understanding of what goods were being transported, when, in what volumes and support kinetic targeting.   “We've seen other APT actors make use of compromised CCTV feeds to monitor the effects of cyber-physical attacks, for example the 2022 attacks against steel mills in Iran where video from the CCTV feed was used to time the execution of the attack in an attempt to avoid harm to people at the site and confirm the damage being caused,” he added. The NCSC said Britain’s support for Ukraine remained “steadfast”. Having already committed £13bn in military aid, the UK this week announced 100 new sanctions on Russia targeting entities and organisations involved in its energy, financial and military systems. This comes in the wake of the largest drone attack on Ukraine staged so far during the three-year war, which Russian dictator Vladimir Putin launched mere hours before a scheduled call with US president Donald Trump. The full advisory – which can be read here – sets out Fancy Bear’s tactics, techniques and procedures (TTPs) in its latest campaign in accordance with the Mitre ATT&CK framework, and also details a number of the common vulnerabilities and exposures (CVEs) being used to attain initial access. Besides the UK and US, the advisory is cosigned by cyber and national security agencies from Australia, Canada, Czechia, Denmark, Estonia, France, Germany, the Netherlands and Poland. Read more about Russian state cyber campaigns Russia is using phishing attacks to compromise encrypted Signal Messenger services used by targets in the Ukraine. Experts warn that other encrypted app users are at risk. The Russian cyber spy operation known as Star Blizzard changed tactics after a takedown operation by Microsoft and the US authorities, turning to widely used messaging platform WhatsApp to try to ensnare its targets. Computer Weekly talks to GCHQ’s National Cyber Security Centre operations director Paul Chichester and former NCSC chief executive Ciaran Martin on Russia, China and Salt Typhoon.

U.S. President Donald Trump opened his four-day Middle East trip on Tuesday by paying a visit to Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, for talks on U.S. efforts to dismantle Iran’s nuclear program, end the war in Gaza, hold down oil prices and more.Prince Mohammed warmly greeted Trump as he stepped off Air Force One at King Khalid International Airport in the Saudi capital and kicked off his Middle East tour.The two leaders then retreated to a grand hall at the Riyadh airport, where Trump and his aides were served traditional Arabic coffee by waiting attendants wearing ceremonial gun-belts. Fighter jet escort The pomp began before Trump even landed. Royal Saudi Air Force F-15s provided an honorary escort for Air Force One as it approached the kingdom’s capital.Trump and Prince Mohammed also took part in a lunch at the Royal Court, gathering with guests and aides in an ornate room with blue accents and massive crystal chandeliers.As he greeted business titans with Trump by his side, Prince Mohammed was animated and smiling.It was a stark contrast to his awkward fist bump with then-President Joe Biden, who looked to avoid being seen on camera shaking hands with the prince during a 2022 visit to the kingdom.Biden had decided to pay a visit to Saudi Arabia as he looked to alleviate soaring prices at the pump for motorists at home and around the globe.At the time, Prince Mohammed’s reputation had been badly damaged by a U.S. intelligence determination that found he had ordered the 2018 killing of journalist Jamal Khashoggi.But that dark moment appeared to be distant memory for the prince as he rubbed elbows with high-profile business executives — including Blackstone Group CEO Stephen Schwarzman, BlackRock CEO Larry Fink and Tesla and SpaceX CEO Elon Musk — in front of the cameras and with Trump by his side.Later, the crown prince will fete Trump with a formal dinner. Trump is also slated to take part Tuesday in a U.S.-Saudi investment conference.“When Saudis and Americans join forces, very good things happen — more often than not, great things happen,” Saudi Investment Minister Khalid al-Falih said. Oil production Saudi Arabia and fellow OPEC+ nations have already helped their cause with Trump early in his second term by stepping up oil production. Trump sees cheap energy as a key component to lowering costs and stemming inflation for Americans. The Republican president has also made the case that lower oil prices will hasten an end to the Russia-Ukraine war.But Saudi Arabia’s economy remains heavily dependent on oil, and the kingdom needs a fiscal break-even oil price of $96 to $98 a barrel to balance its budget. It’s questionable how long OPEC+, of which Saudi Arabia is the leading member, is willing to keep production elevated. The price of a barrel of Brent crude closed Monday at $64.77.“One of the challenges for the Gulf states of lower oil prices is it doesn’t necessarily imperil economic diversification programs, but it certainly makes them harder,” said Jon Alterman, a senior Middle East analyst at the Center for Strategic and International Studies in Washington. Qatar and UAE next Trump picked the kingdom for his first stop, because it has pledged to make big investments in the U.S., but Trump ended up traveling to Italy last month for Pope Francis’ funeral. Riyadh was the first overseas stop of his first term.The three countries on the president’s itinerary — Saudi Arabia, Qatar and the United Arab Emirates — are all places where the Trump Organization, run by Trump’s two elder sons, is developing major real estate projects. They include a high-rise tower in Jeddah, a luxury hotel in Dubai and a golf course and villa complex in Qatar.Trump is trying to demonstrate that his transactional strategy for international politics is paying dividends as he faces criticism from Democrats who say his global tariff war and approach to Russia’s war on Ukraine are isolating the United States from allies.He’s expected to announce deals with the three wealthy countries that will touch on artificial intelligence, expanding energy cooperation and perhaps new arms sales to Saudi Arabia. The administration earlier this month announced initial approval to sell $3.5 billion worth of air-to-air missiles for Saudi Arabia’s fighter jets.But Trump arrived in the Middle East at a moment when his top regional allies, Israel and Saudi Arabia, are far from neatly aligned with his approach. Trump’s decision to skip Israel remarkable, expert says Before the trip, Trump announced that Washington was halting a nearly two-month U.S. airstrike campaign against Yemen’s Houthis, saying the Iran-backed rebels have pledged to stop attacking ships along a vital global trade route.The administration didn’t notify Israel — which the Houthis continue to target — of the agreement before Trump publicly announced it. It was the latest example of Trump leaving the Israelis in the dark about his administration’s negotiations with common adversaries.In March, Israeli Prime Minister Benjamin Netanyahu wasn’t notified by the administration until after talks began with Hamas about the war in Gaza. And Netanyahu found out about the ongoing U.S. nuclear talks with Iran only when Trump announced them during an Oval Office visit by the Israeli leader last month.“Israel will defend itself by itself,” Netanyahu said last week following Trump’s Houthi truce announcement. “If others join us — our American friends — all the better.”William Wechsler, senior director of the Rafik Hariri Center and Middle East Programs at the Atlantic Council, said Trump’s decision to skip Israel on his first Middle East visit is remarkable.“The main message coming out of this, at least as the itinerary stands today, is that the governments of the Gulf … are in fact stronger friends to President Trump than the current government of Israel at this moment,” Wechsler said. Restarting efforts to normalize Israel-Saudi ties Trump, meanwhile, hopes to restart his first-term effort to normalize relations between the Middle East’s major powers, Israel and Saudi Arabia. Trump’s Abraham Accords effort led to Sudan, the UAE, Bahrain and Morocco agreeing to normalize relations with Israel.But Riyadh has made clear that in exchange for normalization it wants U.S. security guarantees, assistance with the kingdom’s nuclear program and progress on a pathway to Palestinian statehood. There seems to be scant hope for making headway on a Palestinian state with the Israel-Hamas war raging and the Israelis threatening to flatten and occupy Gaza.Prince Mohammed last week notably hosted Palestinian Vice President Hussein Sheikh in Jeddah on the sheikh’s first foreign visit since assuming office in April.Hussain Abdul-Hussain, a research fellow at the Foundation for Defense of Democracies, said the crown prince appeared to be subtly signaling to Trump that the kingdom needs to see progress on Palestinian statehood for the Saudis to begin seriously moving on a normalization deal with the Israelis.“Knowing how the Saudis telegraph their intentions, that’s a preemptive, ‘Don’t even think of asking us to show any goodwill toward normalization,'” Abdul-Hussain said. Madhani reported from Dubai, United Arab Emirates. —Zeke Miller, Aamer Madhani and Jon Gambrell, Associated Press