News
Feb 19, 2026
News
Enterprise
Data
Middle East & Africa
NewDecoded
3 min read
Zoho Corporation has officially opened its first two data centres in the United Arab Emirates, located in Dubai and Abu Dhabi. This milestone represents a key step in the company's AED 100 million investment strategy first announced in 2023. By establishing local infrastructure, the global technology firm provides faster performance and domestic data residency for its rapidly expanding Middle Eastern customer base. These facilities will primarily serve as the regional hub for more than 100 cloud-based applications. This includes flagship products from the Zoho brand, such as Zoho One and Zoho Books, alongside enterprise IT management tools from ManageEngine. Businesses can now run their entire operations on a local cloud that fully supports the UAE National Cybersecurity Agenda.
To better serve the public sector, the data centres have earned the CSP Security Standard Certificate from the Dubai Electronic Security Center. This high level of accreditation qualifies the company to partner with government and semi-government entities that require strict local data handling. Additional certifications such as ISO 27001 and CSA STAR Level 2 further bolster the security framework of these new sites.
The expansion follows a period of intense success, with Zoho reporting a 38.7 percent growth in the UAE during 2025. The company also expanded its local partner network and increased its regional workforce by 35 percent to meet rising demand for digital transformation. This infrastructure ensures that enterprises can achieve a lower total cost of ownership while maintaining compliance with federal data protection laws.
Shailesh Davey, Co-founder and CEO of Zoho Corporation, noted that the UAE remains one of the largest markets for the company’s brands. He emphasized that the new data centres will help local organizations adopt cloud technology in line with the Dubai Vision 2030. This move effectively removes the technical and legal barriers for organizations transitioning from traditional on-premise setups to modern cloud architectures.
The launch of these data centres shifts the competitive landscape by offering a vertically integrated alternative to global hyperscalers. While traditional providers often focus on infrastructure alone, Zoho provides the software layer directly on top of local hardware, which significantly simplifies compliance for the banking and government sectors. By removing the friction of international data transfers, the company is positioned to capture a larger share of the UAE data centre market, which is projected to reach $3.33 billion by 2030. This move signals that for global SaaS providers to win in the Middle East, local infrastructure is now a strategic prerequisite rather than an option.