If it's an unstable region, then it might not result in a good return, especially since a blown up data center is 100% loss.

If they're region-locking data appropriately (i.e. for people to comply with domestic storage / gdpr-style requirements) they really can't. Bahrain is only about 300 square miles / 80k hectares.

They could, of course, open other regional data centers in other countries, or say "data in this geo zone may be in any of X, Y or Z" countries, but for the latter that pretty starkly limits some of the major customers they'd have, I would guess, and for the former, well, they have other geo zones already, so if people weren't replicating to them, I'm not sure why adding me-east-1 me-west-1 me-central-1 would fix that issue, they just wouldn't replicate there either.

They did build redundancy but most of it was bombed.