Indian software giant Zoho Corporation, owned by tech billionaire Sridhar Vembu, has announced plans to build two new data centres in the UAE this year. The company is committing AED100 million ($27 million) to establish new facilities in Abu Dhabi and Dubai, significantly expanding its infrastructure footprint in the region.
Deepening MENA Commitment
This investment builds on a previous AED80 million commitment to foster partnerships across the Emirates, collaborating with government entities to accelerate digital transformation. The move underscores the growing importance of the region for Zoho, with the Middle East and North Africa (MENA) now representing its second-fastest-growing market globally, achieving a 41% compound annual growth rate (CAGR) over the last five years.
The UAE stands out as a top-performing market for the company, boasting a customer CAGR of 77% and a revenue CAGR of 45% since 2021. Since opening its Dubai office, Zoho has enabled over 10,000 businesses across MENA to adopt cloud technology.
Strengthening Regional Digital Infrastructure
The new data centres will add to the UAE’s already robust digital infrastructure, which leads the Gulf region with 57 existing facilities. According to Hyther Nizam, Zoho’s head of Middle East and Africa, the company has appointed Equinix to set up the UAE facilities and has begun discussions for similar centres in Saudi Arabia and South Africa.
This expansion reflects a broader trend of investment in the region’s data capacity, crucial for supporting the growth of AI and cloud-based services.
A Competitive Cloud Alternative
Zoho has successfully carved out a market niche by offering open-source, cloud-based software at approximately half the cost of equivalent services from competitors like Google and Microsoft. This value proposition has been a key driver of its rapid growth in the region.
About Zoho Corporation
Zoho Corporation is a global technology company that offers a comprehensive suite of online productivity tools and SaaS applications. Generating approximately $1.5 billion in revenue from key markets like the US and India, the company serves over one million paying customers and operates 20 data centres worldwide.
Source: AGBI
