Zoho Middle East data centres’ expansion is gaining momentum as the Indian software firm plans new facilities in the United Arab Emirates, Saudi Arabia, and South Africa, positioning itself closer to fast-growing enterprise markets across the region.
Zoho Corporation has appointed Equinix to establish data centre infrastructure in the UAE and has initiated discussions for similar facilities in Saudi Arabia and South Africa, Hyther Nizam, the company’s head of Middle East and Africa, told Bloomberg. The company already operates hubs in Dubai and Abu Dhabi.
The expansion will be funded by profits generated in the respective markets, though the investment size has not been disclosed.
Zoho Middle East Data Centres And Data Localisation Strategy
The Zoho Middle East data centres strategy reflects a broader shift in the region’s cloud computing landscape. Governments across the Gulf and parts of Africa are strengthening data-residency frameworks, requiring companies to store and process certain categories of data within their borders.
Large global technology firms, including Alphabet’s Google and Microsoft, are also expanding cloud and co-location facilities in the Middle East and Africa to meet regulatory and enterprise demand.
“Procurement has, to some extent, become influenced by geopolitical and policy considerations,” Nizam told Bloomberg, underscoring how data sovereignty is shaping buying decisions.
For enterprise customers in the UAE and Saudi Arabia, local hosting has become a key compliance requirement, particularly in financial services, healthcare, and public sector contracts.
Regional Growth And Infrastructure Control
Zoho develops cloud-based business software spanning email, accounting, recruitment, and document management. According to Nizam’s comments to Bloomberg, the company’s Middle East and Africa business expanded by around 50 percent over the past year.
Operating its own infrastructure, particularly in African markets, allows Zoho to manage costs more directly, rather than relying solely on third-party cloud providers. This model also enables pricing in local currencies, which can be a differentiator in emerging markets where exchange rate volatility affects enterprise IT budgets.
The Zoho Middle East data centres buildout is therefore not only about regulatory compliance but also about operational control and margin stability.
Revenue Base And Global Footprint
Founded in 1996 and owned by the Vembu family, Zoho generates approximately $1.5 billion in annual revenue, with the bulk of that coming from the United States and India, according to the Bloomberg interview. The company serves more than one million paying customers globally and operates about 20 data centres worldwide.
In Africa, Zoho maintains offices in South Africa, Kenya, Nigeria, and Egypt. It is also considering expansion into Ghana, Uganda, Tanzania, Zimbabwe, and Zambia, reflecting a longer-term commitment to the continent.
Competitive Landscape in the Middle East Cloud Market
The Middle East cloud market is entering a new investment phase as regional governments prioritise digital transformation and sovereign data infrastructure. In the UAE and Saudi Arabia, data centre investments are accelerating as part of broader economic diversification strategies.
For Zoho, expanding Middle East data centres strengthens its ability to compete with global cloud providers while maintaining pricing flexibility. Local infrastructure reduces latency, improves alignment with compliance requirements, and enhances trust among enterprise and government clients.
As data sovereignty and geopolitical considerations increasingly influence procurement decisions, companies with regionally embedded infrastructure may hold an advantage.
