Prime Highlights:
- Zoho is in talks to build its own data centres in the UAE, Saudi Arabia, and South Africa to support rapid regional growth.
- The company will finance the projects using locally generated profits, aiming to strengthen compliance, reliability, and cost control.
Key Facts:
- Zoho has appointed Equinix to set up facilities in the UAE and has begun early-stage discussions for similar sites in Saudi Arabia and South Africa.
- The company currently operates around 20 data centres worldwide, serves over one million paying customers, and generates an estimated $1.5 billion in annual revenue.
Background:
Zoho is in talks to build its own data centres in the United Arab Emirates, Saudi Arabia and South Africa as it expands in three of its fastest-growing markets. The company plans to finance the projects using profits generated within the region, according to Hyther Nizam, head of Middle East and Africa operations.
Zoho has appointed Equinix to set up facilities in the UAE and has begun early discussions for similar sites in Saudi Arabia and South Africa. The company already operates hubs in Dubai and Abu Dhabi and wants to increase local capacity to serve customers more directly.
The expansion comes as governments across the Middle East and Africa push for stronger data localisation rules. Global technology firms such as Google and Microsoft are also investing in regional cloud and co-location infrastructure to meet these requirements and move services closer to users.
Zoho said owning its infrastructure in Africa will help control operating costs and allow pricing in local currencies. The company can also offer subsidised rates in some markets. This strategy has supported strong growth, with regional revenue rising about 50% in the past year.
Founded in 1996, Zoho provides cloud-based business software covering email, documents, finance, hiring, and customer management. The company positions its products at about half the price of similar services from bigger competitors. It aims for these lower prices at small and medium-sized businesses.
Zoho earns most of its estimated $1.5 billion yearly revenue from the United States and India, but sees the Middle East and Africa as key future growth areas. It currently operates around 20 data centres globally and serves more than one million paying customers.
The company has offices in several African countries, including South Africa, Kenya, Nigeria and Egypt, and plans to expand into Ghana, Uganda, Tanzania, Zimbabwe and Zambia.
Zoho said the new data centres will strengthen service reliability, support compliance with local regulations, and improve performance for regional customers as digital adoption accelerates.
