India’s Zoho rolls out UAE data centers as Gulf data sovereignty demands tighten

Zoho doubles down on UAE cloud expansion: Indian software major Zoho launched its first UAE data centers in Dubai and Abu Dhabi, as part of a AED 100 mn (USD 27.2 mn) investment plan to expand cloud infrastructure in the country. The move follows the company’s 2024 data center launch in Saudi Arabia and reflects a broader shift toward data localization across the Gulf, Hyther Nizam, Zoho’s CEO for the Middle East and Africa, tells EnterpriseAM.

A natural progression: “Zoho’s investment in UAE and KSA infrastructure should be seen as both a strategic and regulatory move — but fundamentally driven by long-term positioning rather than compliance alone,” Nizam tells us.

Why it matters: Government and semi-government clients in the Gulf are placing stricter requirements on data protection, sovereignty, and regulatory compliance, especially for sensitive data. “This makes data localization essential for us as we continue delivering the highest standards of privacy and security,” Nizam says.

Demand drivers in the UAE: Demand for UAE-hosted cloud services is being largely shaped by the public sector, which continues to set the tone for market expectations. Regulated industries and private companies are also aligning with these standards, particularly as they engage more closely with government entities.