The Dwarves of Alair live in great cities, carved into the living rock of the Erean Mountains. Humans refer to these dwellings as Dwarfcastles. Gloiran and Kobur are north of Sildor and the Elf River; Nisur is to the south. The dwarves of Kobur were unusual in that they traded with the elves of Sildor, sending trade caravans down from the mountains to Curulindale to trade to the elves and the Erlyid humans. The Dragon's invasion did not affect the dwarfcastles of the Erean mountains very greatly. The southward migration of the entire Orc people - evicted from their great cities in the north - in the 1400s was a bad time for the dwarves, who were basically trapped underground while the orcs passed by.
The dwarves of Kobur sent troops to join the Great Alliance and fight at Lantalaure in 1415; none of them ever returned home.
The armies of the Dragon assaulted Kobur and Gloiran at the start of the abortive war launched southwards in 1600. Both cities withstood the assaults, though Kobur's western gates were destroyed in the attack and the King of Kobur, Hrolf Earthstar was assassinated early in the attack.
Since the Slaying, the dwarf cities retrenched and repaired the damage of the brief Dwarf War. A new strong King in Kobur, Berrin Ironfist, meant that the city was ready for anything that may transpire.
The repatriation of the Orcs in the 1600s made the areas around Stormpeak, both above and below ground, once more subject to regular conflict. This peaked as Kishshul and Gadhuvras expanded into the Gorfangach. With the collapse of that empire, things have more or less returned to how they were before the Dragon came. The tumultuous events in the centre of Alair have had little effect on the Dwarves under their mountains.