That's a possibility but the AWS services is worldwide and to provide better performance for customers located in various parts of the world, they have setup datacenters in those locations rather than have all the traffic go to single datacenter in a single location.
The fact that the data is redundant is really what saved us. The datacenter in Bahrain is one of many throughout the world and N3V and Amazon were able to relatively quickly move their operation to another colocated server. If all of the data was housed on a single server without this redundancy, everything that N3V and we have would've gone up in smoke.